Core Insights - The third quarter of 2024 earnings results for oil and energy companies have shown better-than-expected outcomes despite declining commodity prices [1] - Several companies have surpassed earnings forecasts, leading to a more optimistic outlook for the sector [1] Commodity Price Impact - Oil prices in Q3 2024 declined compared to the previous year, with average monthly prices for West Texas Intermediate crude at $81.80, $76.68, and $70.24 per barrel in July, August, and September respectively, down from $76.07, $81.39, and $89.43 [2] - Natural gas prices also faced pressure, averaging $2.07, $1.98, and $2.28 per MMBtu in July, August, and September, down from $2.55, $2.58, and $2.64 in the same months last year [2] China's Economic Influence - China's economic slowdown has significantly contributed to the decline in oil prices, as it is the world's largest crude oil importer [3] - Weak economic indicators in China, including low inflation and sluggish consumer demand, have raised concerns about its oil consumption levels [3] Resilience of Energy Firms - Despite challenges, a notable percentage of energy firms have exceeded analyst expectations, with 48 S&P 500 members reporting a 5.2% year-over-year increase in total earnings and a 4.9% rise in revenues [4] - Approximately 81.3% of these firms have beaten EPS estimates, and 72.9% have surpassed revenue projections, indicating potential investment opportunities [4] Stocks with Earnings Beat Potential - Identifying stocks with the potential to outperform is crucial for investors, with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 increasing the likelihood of a positive earnings surprise [5] Promising Energy Stocks - ProPetro Holding Corp. (PUMP) has a Zacks Rank of 3 and an Earnings ESP of +60%, primarily operating in the Permian Basin [6] - Core Laboratories N.V. (CLB) holds a Zacks Rank of 3 with an Earnings ESP of +2.63%, providing reservoir management and production enhancement services [7] - Oceaneering International (OII) has an Earnings ESP of +2.27% and a Zacks Rank of 3, supplying offshore equipment and technology solutions [7] Conclusion - The Q3 2024 earnings season has revealed both challenges and opportunities for energy investors, with several companies demonstrating stronger-than-expected results [8] - Focusing on stocks with potential for positive earnings surprises, such as ProPetro Holding, Core Laboratories, and Oceaneering International, may allow investors to capitalize on post-earnings momentum [8]

Core Insights - Core Laboratories Inc. (CLB) is expected to report third-quarter earnings on October 23, with a consensus estimate of 25 cents per share and revenues of $132.71 million [1] - The company reported adjusted earnings of 22 cents per share in the last quarter, exceeding the consensus estimate by 5 cents, driven by strong performance in the Reservoir Description segment [3] - The Zacks Consensus Estimate for third-quarter 2024 earnings indicates a 13.64% year-over-year increase, while revenues are expected to rise by 5.88% compared to the previous year [4] Financial Performance - CLB's revenues for the third quarter are projected to increase to $133.1 million, up from $130.6 million in the previous quarter, largely due to the Reservoir Description segment's performance [6] - Operating income is anticipated to remain strong, supported by effective cost management and a focus on high-margin services [7] - The company's costs of services and product sales are expected to decrease to $102.4 million, with general and administrative expenses projected to drop from $10.3 million to $9.9 million [8] Strategic Initiatives - CLB's strategic use of digital technologies is likely to enhance performance by streamlining operations and reducing costs through automation [9] - The company is expected to achieve an earnings beat this season, supported by a positive Earnings ESP of +2.63% and a Zacks Rank of 3 [10]

Core Laboratories Overview - Core Laboratories (CLB) is positioned well to potentially beat earnings estimates in its upcoming quarterly report, continuing its solid history of performance in the Zacks Oil and Gas - Field Services industry [1][4] Earnings Performance - The company has a strong track record of exceeding earnings estimates, with an average surprise of 11.76% over the last two quarters [2] - In the last reported quarter, Core Laboratories achieved earnings of $0.22 per share, surpassing the Zacks Consensus Estimate of $0.21 per share, resulting in a surprise of 4.76% [3] - For the previous quarter, the company was expected to earn $0.16 per share but delivered $0.19 per share, yielding a surprise of 18.75% [3] Earnings Estimates and Predictions - Recent estimates for Core Laboratories have been trending upward, indicating positive sentiment among analysts [4] - The Zacks Earnings ESP (Expected Surprise Prediction) for the company is currently positive at +2.63%, suggesting bullish expectations for near-term earnings [7] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have historically produced positive surprises nearly 70% of the time [5] Upcoming Earnings Report - Core Laboratories is expected to release its next earnings report on October 23, 2024 [7]

Core Viewpoint - Core Laboratories Inc. (CLB) has shown strong performance in the oilfield services sector, with a year-to-date share price increase of 13.9%, outperforming the broader oil and energy sector's growth of 8.2% [1][2] Financial Performance - The Zacks Consensus Estimate projects CLB's earnings per share to be 95 cents for 2024 and $1.33 for 2025, indicating year-over-year growth of 18.75% and 39.65% respectively [3][4] - In the second quarter of 2024, CLB reported an operating income of $16.4 million, a 10% sequential increase, and free cash flow of $14.3 million, while reducing net debt by $15.8 million [5][9] Revenue Growth - CLB's sales are projected to reach $531.72 million in 2024 and $573.88 million in 2025, reflecting year-over-year growth of 4.3% and 7.93% respectively [6][7] - Approximately 80% of CLB's revenues are generated from international markets, with the Reservoir Description segment's revenues growing 3.5% year-over-year in Q2 2024 [7] Market Trends - The company anticipates continued growth in international markets, driven by increased investments in oil fields and a projected rise in crude oil demand of 1-2 million barrels per day in 2024 and 2025 [6][7] Competitive Advantage - CLB is leveraging advanced technologies such as Dual Energy Computed Tomography and HERO-oriented FRAC technology to enhance production and optimize well productivity, providing a competitive edge [8] - The company's asset-light business model has resulted in a return on invested capital (ROIC) of 8%, allowing it to maintain profitability even during lower capital expenditure periods [10] Investment Consideration - Given the positive trends in financial performance, revenue growth, and competitive positioning, CLB stock presents an attractive entry point for investors, currently trading 20% lower than its 52-week high [11]

Core Viewpoint - OPEC's 'World Oil Outlook' presents a bullish forecast for oil demand, asserting that oil and gas will remain essential to global energy until 2050, suggesting a long-term buying opportunity for investors in the sector [1][2] Demand Growth in the Foreseeable Future - OPEC predicts global oil demand will rise from 102.2 million barrels per day (bpd) in 2023 to 120.1 million bpd by 2050, contrasting with the IEA's forecast of a peak at 105.6 million bpd by 2029 [2] Renewables and Energy Transition - OPEC acknowledges the growth of renewables but maintains that oil will still account for approximately 29.3% of the global energy mix by 2050, only slightly down from 30.9% today [3] Contrasting Supply Projections - OPEC anticipates $17.5 trillion in investment needed for oil production to meet future demand, with OPEC+ expected to control 52% of global production by 2050 [4] Emerging Markets: New Engine of Oil Growth - India is projected to contribute 8 million bpd to the expected demand increase by 2050, with non-OECD countries expected to offset declines in developed nations' oil consumption [6] The Road Ahead - OPEC's long-term outlook suggests that oil-focused stocks will remain attractive, particularly due to rising demand from emerging markets and consistent upstream investments [7] 3 Oil/Energy Stocks to Buy - Recommended stocks include Core Laboratories (valued at $5.2 billion), TechnipFMC (valued at $11.4 billion), and Tullow Oil (valued at $555.2 million), with significant projected earnings growth for each [8][9]

Group 1 - Core Laboratories (CLB) has shown a year-to-date return of approximately 3.6%, outperforming the average gain of 2.6% in the Oils-Energy sector [4] - The Zacks Consensus Estimate for CLB's full-year earnings has increased by 8.4% over the past quarter, indicating a positive trend in analyst sentiment [4] - Core Laboratories is ranked 2 (Buy) in the Zacks Rank system, which focuses on stocks with improving earnings outlooks [3] Group 2 - Core Laboratories is part of the Oil and Gas - Field Services industry, which has seen an average loss of 8.6% this year, highlighting CLB's relative strength in this area [6] - In contrast, Talen Energy Corporation (TLN), another stock in the Oils-Energy sector, has significantly outperformed with a year-to-date return of 167.2% and a Zacks Rank of 1 (Strong Buy) [5] - The Oils-Energy sector is ranked 16 in the Zacks Sector Rank, which includes 16 different groups [2]

Group 1 - Core Laboratories (CLB) has experienced significant selling pressure, resulting in a 10.1% decline in stock price over the past four weeks, but analysts expect better earnings than previously predicted [1] - The stock is currently in oversold territory, indicated by an RSI reading of 29.36, suggesting a potential reversal in trend [3] - Over the last 30 days, the consensus EPS estimate for CLB has increased by 9.2%, indicating a positive outlook for earnings and potential price appreciation [3] Group 2 - CLB holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [3]

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Group 1 - Core Laboratories (CLB) is currently outperforming the Oils-Energy sector with a year-to-date return of approximately 6.4%, compared to the sector average of 5.5% [4] - The Zacks Rank for Core Laboratories is 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 4.5% increase in the consensus estimate for full-year earnings over the past three months [3] - Core Laboratories is part of the Oil and Gas - Field Services industry, which has an average year-to-date loss of 3.4%, further highlighting CLB's strong performance relative to its peers [6] Group 2 - The Oils-Energy group, which includes Core Laboratories, ranks 14 out of 16 in the Zacks Sector Rank, indicating a mid-tier performance among sector groups [2] - Ranger Energy (RNGR), another stock in the Oils-Energy sector, has significantly outperformed with a return of 22.4% since the beginning of the year and also holds a Zacks Rank of 2 (Buy) [4][5] - The Oil and Gas - Field Services industry consists of 24 individual stocks, with Core Laboratories and Ranger Energy being notable performers within this group [6][7]

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 June 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) Delaware 98- ...