Revenue Performance - Fourth quarter 2024 revenue was $129.2 million, down 4% sequentially but up slightly year-over-year[3] - Full year 2024 revenue reached $523.8 million, representing a 3% increase compared to 2023[3] - Revenue for Q4 2024 was $129,237 thousand, a decrease of 3.8% from Q3 2024 but an increase of 0.8% compared to Q4 2023[29] - Total revenue for the year ended December 31, 2024, was $523,848 thousand, an increase of 2.8% compared to 2023[31] - First quarter 2025 revenue is projected to range from $121 million to $127 million, with operating income of $10.2 million to $12.8 million[22] Operating Income - Fourth quarter operating income was $14.2 million; ex-items, it was $15.7 million, down 14% sequentially but up 4% year-over-year[3] - Full year operating income, ex-items, was $65.3 million, with incremental margins of 29%[1] - Operating income for Q4 2024 was $14,174 thousand, down 28.4% from Q3 2024 and down 2.8% from Q4 2023[29] - Operating income for the year ended December 31, 2024, was $58,556 thousand, up 7.2% from 2023[31] - GAAP reported operating income for Q4 2024 was $14,174 million, down from $19,803 million in Q3 2024 and up from $14,581 million in Q4 2023[39] Net Income - Net income attributable to Core Laboratories Inc. for Q4 2024 was $7,403 thousand, a decrease of 37.0% from Q3 2024 but an increase of 236.7% compared to Q4 2023[29] - Excluding specific items, net income for Q4 2024 was $10,396 million, compared to $11,814 million in Q3 2024 and $8,909 million in Q4 2023[39] - The year ended December 31, 2024, saw a GAAP reported earnings per share of $0.66, with specific items impacting the results throughout the year[40] Cash Flow - Fourth quarter free cash flow was $16.2 million, up over 50% sequentially[3] - Full year free cash flow totaled $43.4 million, an increase of over 200% compared to 2023[11] - Free cash flow for Q4 2024 was $16,234 million, with net cash provided by operating activities at $20,615 million and capital expenditures of $4,381 million[52] Debt and Leverage - The debt leverage ratio was reduced to 1.31, the lowest in over eight years, with net debt decreased by $11.7 million during the quarter[4] - Long-term debt, net, decreased to $126,111 thousand, down 9.8% from Q3 2024 and down 22.7% from Q4 2023[33] Segment Performance - Reservoir Description segment revenue for Q4 2024 was $86.8 million, down 2% sequentially but up 3% year-over-year[5] - Production Enhancement segment revenue for Q4 2024 was $42.4 million, down 7% sequentially and 3% year-over-year[7] - Operating income for the Reservoir segment in Q4 2024 was $16,643 million, while the Production Enhancement segment reported an operating loss of $2,597 million[46] Tax and Other Items - The effective tax rate for the year ended December 31, 2024, was 30%, significantly higher than 10% in 2023[31] - The company recognized a gain on insurance recovery of $2,572 million related to a fire incident in one of its U.K. facilities[43] Foreign Exchange - The company experienced foreign exchange gains of $761 million in Q4 2024, compared to losses of $239 million in Q3 2024 and gains of $468 million in Q4 2023[39] Return on Investment - Return on Invested Capital (ROIC) for the company was 10.3%, calculated from a Net Operating Profit After Tax (NOPAT) of $40.9 million and Average Total Invested Capital of $397.6 million[48]

Core Points - Core Laboratories Inc. (CLB) is expected to report fourth-quarter earnings on January 29, with a consensus estimate of 23 cents per share and revenues of $130.9 million [1][4] - The company has shown a positive trend in earnings, beating the consensus estimate in three of the last four quarters, with an average surprise of 4.63% [3][4] Financial Performance - In the last reported quarter, CLB's adjusted earnings were 25 cents per share, exceeding the consensus estimate by 4 cents, driven by strong performance in the Reservoir Description and Production Enhancement segments [3] - Revenues for the last quarter were $134.4 million, surpassing the Zacks Consensus Estimate by 1.1% [3] Future Expectations - The Zacks Consensus Estimate for fourth-quarter 2024 indicates a 21.05% year-over-year increase in earnings and a 2.10% increase in revenues compared to the previous year [4] - Projected revenues for the upcoming quarter are expected to rise to $130.9 million from $128.2 million in the same quarter last year, primarily due to a 4.2% increase in the Reservoir Description segment [6] Cost Considerations - Total operating expenses for the fourth quarter are anticipated to be $115.2 million, reflecting a 1.3% increase from the previous year [7] - Costs of services and product sales are expected to rise from $101.5 million to $103.1 million, while general and administrative expenses are projected to increase from $8.7 million to $10.1 million [7] Earnings Prediction - The current model does not predict an earnings beat for CLB, as the Earnings ESP is 0.00% and the Zacks Rank is 4 (Sell) [9][10]

Company Overview - Core Laboratories (CLB) is expected to report a year-over-year increase in earnings due to higher revenues for the quarter ended December 2024, with earnings projected at $0.23 per share, reflecting a +21.1% change [1][3] - Revenues are anticipated to reach $130.9 million, which is a 2.1% increase from the same quarter last year [3] Earnings Report Expectations - The earnings report is scheduled for release on January 29, 2025, and could influence the stock price significantly depending on whether the results meet or exceed expectations [2] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analyst expectations [4] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that Core Laboratories has an Earnings ESP of 0%, as the Most Accurate Estimate matches the Zacks Consensus Estimate, suggesting no recent changes in analyst views [10] - The company currently holds a Zacks Rank of 4 (Sell), which complicates the prediction of an earnings beat [11] Historical Performance - In the last reported quarter, Core Laboratories met the expected earnings of $0.25 per share, resulting in no surprise [12] - Over the past four quarters, the company has surpassed consensus EPS estimates twice [13] Industry Context - In the broader Oil and Gas - Field Services industry, Liberty Oilfield Services (LBRT) is expected to report earnings of $0.10 per share, indicating a significant year-over-year decline of -81.5% [17] - Liberty Oilfield Services has seen a 23.7% downward revision in its EPS estimate over the last 30 days, and it also has an Earnings ESP of 0.00% combined with a Zacks Rank of 5 (Strong Sell) [18]

Core Insights - Core Laboratories Inc. (CLB) plays a vital role in the oil and gas industry, providing services for reservoir analysis and well production enhancement [1] - The company operates in two main segments: Reservoir Description and Production Enhancement [1] Performance Drivers - Robust international growth is a key factor, with approximately 80% of Reservoir Description's revenues coming from international markets, leading to a 3% sequential revenue growth in Q3 [3] - The Production Enhancement segment saw a 24% surge in international product sales, benefiting from increased demand in high-growth regions [3] - CLB's asset-light business model minimizes capital expenditure (2–2.5% of revenues), resulting in a high return on invested capital (ROIC) of 9.94%, significantly above the sector average of 6.54% [4] - Engagement in high-margin projects, such as offshore exploration in the Middle East and Brazil's pre-salt basins, allows CLB to command premium pricing and maintain high incremental margins [6] - Positive macro trends indicate global oil demand is expected to grow by 1-1.6 million barrels per day by 2025, positioning CLB to benefit from increased investment in offshore and international oilfield developments [8] Risks and Challenges - CLB has underperformed in the past six months, with a stock decline of 19.1% compared to a 9.9% drop in the oil and energy sector [9] - Intense competition in the Production Enhancement segment, particularly in the perforating business, limits pricing power and margin sustainability [12] - Weakness in U.S. markets, driven by declining completion activity and low natural gas prices, poses challenges for domestic revenue growth [13] - The company's performance is closely tied to oil prices, with significant declines potentially reducing exploration budgets and demand for services [13]

Core Insights - The report titled "Clinical Chemistry and Immunoassay Industry, Global, 2023-2028" provides an in-depth analysis of the clinical chemistry and immunoassay sector, which holds the largest share in the in vitro diagnostics (IVD) market [1][2] - This sector focuses on lab-based testing of body fluids, primarily blood, urine, or saliva, utilizing various analyzers and assays to aid in the diagnosis and treatment of health conditions [2][3] Market Overview - Clinical chemistry instruments assess different chemicals in body fluids for health evaluation, while immunoassay tests measure analyte concentrations using antibody-antigen binding [3] - The key end-users include hospitals, clinics, diagnostic laboratories, and research institutions, with applications spanning cancer, cardiac, diabetes, infectious diseases, and more [4] Growth Opportunities - The report identifies four primary growth opportunities that leverage current trends to enhance economic potential and sustain value within the sector [4][5] - Key growth drivers include advancements in clinical chemistry and immunoassay technologies, particularly in cardiac applications [5] Revenue Forecasts - The report outlines revenue forecasts segmented by application areas and regions, providing insights into market dynamics and potential growth trajectories [6][8] - Specific growth metrics and revenue share analyses are included to assess the competitive landscape and identify leading players in the market [6][7] Strategic Insights - The report discusses the impact of strategic imperatives on the clinical chemistry and immunoassay industry, highlighting competitive environments and key competitors [7] - It also covers various growth generators across different disease areas, including sepsis, neurology, routine testing, and integrated analyzers [7][8]

Company Performance - Core Laboratories Inc (CLB) shares have risen 11 8% year to date (YTD), outperforming the broader oil and energy sector's 5 6% growth and surpassing competitors like Drilling Tools International Corporation (DTI), Helix Energy Solutions Group, Inc (HLX), and RPC, Inc (RES) [1] - CLB reported a sequential improvement in key financial metrics for Q3 2024, including a 7 2% year-over-year revenue rise and 3% sequential increase to $134 4 million, along with $10 4 million free cash flow generation [4] - The company reduced its debt by $11 8 million, bringing its leverage ratio to the lowest level in six years, highlighting strong financial discipline and a resilient balance sheet [4] Earnings and Growth Potential - The Zacks Consensus Estimate projects CLB's earnings per share to be $0 89 for 2024 and $1 11 for 2025, representing year-over-year growth of 11 25% and 23 97%, respectively [3] - CLB's growth potential is supported by its strong fundamentals, innovative technologies, and alignment with long-term energy trends [3][5][6] Industry Position and Competitive Edge - CLB operates in over 50 countries, providing reservoir management and production enhancement services to oil and gas companies [1] - The company is recognized for its industry-leading technologies, such as the Pulverizor for plug-and-abandonment operations and Flow Profiler diagnostic solutions for unconventional reservoirs, which address cost reduction and operational efficiency challenges [5] - CLB is strategically positioned to benefit from long-term industry trends, including rising global crude oil demand and underinvestment in exploration and development, as forecasted by organizations like OPEC+ and the IEA [6] Market Challenges and Risks - CLB's operations are vulnerable to geopolitical conflicts and extreme weather events, such as Gulf of Mexico hurricanes, which delayed significant projects and temporarily reduced diagnostic services revenues [8] - Weakness in the U S onshore market, driven by low natural gas prices and industry consolidation, has led to a decline in domestic product sales, which may weigh on CLB's overall performance [9] - The company operates in a highly competitive and fragmented market, particularly in the Production Enhancement segment, where pricing power and differentiation are critical [10] - CLB's performance is closely tied to volatile crude oil prices, which could reduce exploration and production activities and impact demand for its services [11] Strategic Outlook - CLB's strong growth potential, solid earnings, healthy balance sheet, and innovative technologies make it an attractive investment in the oilfield services sector [12] - However, investors should remain cautious of risks such as geopolitical instability, oil price volatility, and challenges in the U S onshore market, which could affect future performance [12]

Core Laboratories Overview - Core Laboratories reported Q3 2024 adjusted earnings of 25 cents per share, exceeding the Zacks Consensus Estimate of 21 cents and up from 22 cents in the same quarter last year [2] - Operating revenues for the quarter were $134.4 million, surpassing the Zacks Consensus Estimate of $133 million by 1.1% and increasing 7.5% from $125 million in Q3 2023 [3] Financial Performance - As of September 30, 2024, Core Laboratories' net debt was $120.5 million, a decrease of $11.8 million during the quarter, with a leverage ratio improving to 1.47 from 1.66 [4] - The company had cash and cash equivalents of $21.5 million and long-term debt of $139.9 million, resulting in a debt-to-capitalization ratio of 35.3% [7] Segment Performance - Reservoir Description segment revenues increased 3.5% to $88.8 million, with operating income rising from $13 million to $16.5 million, driven by higher demand for reservoir analysis [5] - Production Enhancement segment revenues grew 13.4% to $45.6 million, although operating income of $3.2 million fell short of projections [6] Future Outlook - For Q4 2024, Core Laboratories expects revenues between $128.5 million and $135.5 million, with earnings per share projected between 20 cents and 25 cents [8] - The company anticipates a multi-year recovery in the international market, with crude oil demand expected to rise by 1-1.6 million barrels per day in 2025 [10][11] Market Conditions - Short-term volatility in crude oil markets is expected due to global economic uncertainties, but long-term project activity in regions like the Middle East and West Africa is anticipated to boost demand for Core Lab's services [12] - U.S. land activity is expected to decline in Q4 2024 but is projected to return to similar levels year-over-year in 2025 [13] Industry Context - Core Laboratories is part of the Zacks Oil and Gas - Field Services industry, where competitors like Schlumberger reported a year-over-year revenue increase of 10.2% [18]

Group 1 - CORE LABS INC (CLB) is experiencing significant activity in the options market, particularly with the Dec 20, 2024 $35.00 Call showing high implied volatility, indicating potential for a major price movement [1] - Implied volatility reflects market expectations for future stock movement, suggesting that investors anticipate a significant event that could lead to a rally or sell-off [2] - Analysts currently rate CORE LABS INC as a Zacks Rank 3 (Hold) within the Oil and Gas – Field Services industry, which is in the bottom 42% of the Zacks Industry Rank, with recent consensus estimates for the current quarter decreasing from 28 cents per share to 25 cents per share [3] Group 2 - The high implied volatility surrounding CORE LABS INC may indicate a developing trading opportunity, as options traders often seek to sell premium on such options to capture decay, hoping the stock does not move as much as expected by expiration [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ________________ to ______________ Commission File Number: 001-41695 CORE LABORATORIES INC. (Exact name of registrant as specified in its charter) Delawar ...

Core Laboratories Inc. (NYSE:CLB) Q3 2024 Earnings Conference Call October 24, 2024 8:30 AM ET Company Participants Larry Bruno - Chairman and Chief Executive Officer Chris Hill - Chief Financial Officer Gwen Gresham - Senior Vice President and Head, Investor Relations Conference Call Participants Sean Mitchell - Daniel Energy Partners Stephen Gengaro - Stifel Operator Good day and welcome to the Core Lab Q3 2024 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instruction ...