Wall Street expects a year-over-year decline in earnings on lower revenues when Core Laboratories (CLB) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on April 24. ...

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Financial Performance - Total revenue for the year ended December 31, 2023, was $509.8 million, a 4.1% increase compared to $489.7 million in 2022[71] - Service revenue accounted for $371.9 million, representing 73.0% of total revenue, with a 7.2% increase from $347.0 million in 2022[71] - Product sales revenue decreased by 3% to $137.9 million, primarily due to a 21% decline in the U.S. land rig count[74] - Operating income rose to $54.6 million, a significant increase of 31.6% from $41.5 million in 2022[71] - Net income attributable to Core Laboratories Inc. was $36.7 million, an 88.5% increase compared to $19.5 million in 2022[71] - Diluted earnings per share increased to $0.78, reflecting an 85.7% rise from $0.42 in 2022[71] - Operating income for 2023 was $54.64 million, representing a 31.6% increase from $41.52 million in 2022[1] - Revenue from the Reservoir Description operating segment for the year ended December 31, 2023 was $333.3 million, an increase of 8% compared to 2022[144] Expenses and Costs - General and administrative expenses increased by 5.6% to $40.3 million, up from $38.1 million in 2022[71] - Cost of product sales for 2023 was $117.8 million, a 1% decrease from $119.4 million in 2022, with costs as a percentage of product sales revenue increasing to approximately 86%[102] - General and administrative expenses for 2023 were $40.3 million, a 6% increase from $38.1 million in 2022, primarily due to higher stock compensation expenses[103] Cash Flow and Debt - Cash provided by operating activities for 2023 was $24.8 million, slightly down from $25.0 million in 2022[117] - Free cash flow for the year ended December 31, 2023 was $14.2 million, compared to $14.7 million in 2022[120] - As of December 31, 2023, total long-term debt was $166.0 million, with a leverage ratio of 1.76 and an interest coverage ratio of 6.37[122] - Cash used in financing activities in 2023 was $18.4 million, primarily due to a net reduction in debt of $9.0 million[150] Market Conditions - The U.S. land-based rig count decreased approximately 21% at the end of 2023 compared to the end of 2022[96] - The geopolitical conflict between Russia and Ukraine caused significant volatility in crude oil prices during 2022 and into 2023, with average prices elevated in 2022 but decreasing in 2023[158] - The company expects crude-oil supply lines to remain more stable, although recent conflicts in the Middle East have caused some disruptions[158] Investments and Future Outlook - The company maintained annual capital expenditures between $10.0 million and $13.5 million for 2021, 2022, and 2023, significantly lower than pre-pandemic levels[69] - The company expects to continue investing in capital expenditures aligned with client demand, although the specific investment level for 2024 has not yet been determined[125] - The International Energy Agency reports that global demand for crude oil and natural gas remains high, but growth is expected to slow down in 2024 due to a weakening macroeconomic climate[126] Shareholder Returns - The company repurchased 113,792 shares of common stock for $2.2 million at an average price of $19.35 per share during 2023[91] - The company maintained a quarterly dividend of $0.01 per share throughout 2023[89] Tax and Compliance - Uncertain tax positions accrued as of December 31, 2023 amount to $3.5 million, with the timing of payment being uncertain[124] - The company had tax net operating loss carry-forwards in various jurisdictions of $32.8 million as of December 31, 2023[156] - The company has not recorded any material impairment charges related to long-lived assets during the years ended December 31, 2023, 2022, and 2021[133] Operational Insights - The inventory of drilled but uncompleted wells (DUC) in the U.S. declined from 4,577 at the end of 2022 to 4,374 at the end of 2023[95] - The company is involved in large-scale core analyses and reservoir fluids characterization studies in major oil-producing regions, including projects in Guyana, Suriname, and the Gulf of Mexico[128] - Revenue from the Production Enhancement segment for the year ended December 31, 2023 was $176.4 million, a decrease of 3% compared to 2022, primarily due to reduced drilling and completion activities in the U.S. land market[114] - Free cash flow decreased slightly by $0.5 million for the year ended December 31, 2023, primarily due to a slightly higher level of capital spending in 2023[151] - Revenue associated with certain customer contracts denominated in foreign currencies was adversely impacted by the devaluation of major currencies against the U.S. Dollar[144]

Financial Data and Key Metrics Changes - For the full year 2023, earnings per diluted share excluding items was $0.80, up 40% from the previous year, and on a GAAP basis, it was $0.86 [17] - Revenue for Q4 2023 was $128.2 million, up 2% compared to Q3 and flat year-over-year [50] - Operating income for Q4 was $15 million, with operating margins at 12%, slightly down from 13% in Q3 [27] - The leverage ratio improved to 1.76, the lowest since Q2 2019, as the company aims for a target of 1.5 times or lower [9] Business Line Data and Key Metrics Changes - Reservoir Description revenue for Q4 was $84.6 million, flat compared to Q3, with operating income at $12.3 million and margins at 15%, down from 17% in Q3 due to increased labor costs [79] - Production Enhancement revenue was $43.6 million, up approximately 8% sequentially, with operating income at $2.4 million and margins at 6%, up from 4% in Q3 [95] Market Data and Key Metrics Changes - Demand for Reservoir Description assay work was uneven due to geopolitical conflicts affecting maritime hydrocarbon cargo movement [11] - The company anticipates that international upstream projects will continue to grow, supporting crude oil demand and energy security [19] Company Strategy and Development Direction - The company remains focused on maximizing free cash flow and returns on invested capital while investing in growth opportunities through new technologies and market penetration [6][47] - Core Laboratories aims to strengthen its balance sheet by using free cash to reduce debt and maintain a lean organization [47][61] Management's Comments on Operating Environment and Future Outlook - Management noted that geopolitical conflicts in Ukraine and the Middle East create volatility in trading patterns and demand for laboratory services [62] - The company projects first quarter 2024 revenue to range from $122 million to $128 million, with operating income of $11.8 million to $14.3 million [126] Other Important Information - The company recorded a net income of $6.5 million for Q4 on a GAAP basis, with net income excluding items at $8.9 million, down from $10.3 million in the prior quarter [39][40] - Interest expense increased to $3.6 million in Q4 compared to $3.1 million in the prior quarter due to maturing senior notes [37] Q&A Session Summary Question: Can you discuss margin progression in Reservoir Description and potential incrementals in the second half of 2024? - Management indicated that the segment is highly exposed to international activity, projecting low double-digit growth next year, with incremental margins expected to be around 50% to 60% on growth [103] Question: What is the competitive landscape for the US perforating market? - Management acknowledged a crowded market but emphasized Core Lab's strong competitive edge in shaped charge energetics and the quality of their products [110] Question: How are international projects progressing, particularly in Brazil and Guyana? - Management noted that the Middle East is leading, followed by the South Atlantic margin, with some bright spots in West Africa and Asia Pacific [109]

Core Laboratories (CLB) reported fourth-quarter 2023 adjusted earnings of 19 cents per share, which missed the Zacks Consensus Estimate of 20 cents. The bottom line was also lower than the year-ago quarter’s reported figure of 20 cents. This could be attributed to poor performance in the Production Enhancement segment.However, this oilfield service provider’s operating revenues of $128 million were in line with the Zacks Consensus Estimate. The top line increased 0.3% from the year-ago quarter’s level of $1 ...

For the quarter ended December 2023, Core Laboratories (CLB) reported revenue of $128.21 million, up 0.5% over the same period last year. EPS came in at $0.19, compared to $0.20 in the year-ago quarter.The reported revenue represents a surprise of +0.32% over the Zacks Consensus Estimate of $127.8 million. With the consensus EPS estimate being $0.20, the EPS surprise was -5.00%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determ ...

Core Laboratories (CLB) came out with quarterly earnings of $0.19 per share, missing the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.20 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -5%. A quarter ago, it was expected that this energy services company would post earnings of $0.23 per share when it actually produced earnings of $0.22, delivering a surprise of -4.35%.Over the last four quarters ...

Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $125.3 million, down 2% sequentially and flat year-over-year [14] - Operating income, ex-items, was $16 million, up 2% sequentially and up 20% year-over-year [8][19] - Earnings per share, ex-items, was $0.22, up from $0.21 in Q2 2023 and $0.18 in Q3 2022 [19] - Operating margins improved to 13%, up from 12% in Q2 2023 and 11% in Q3 2022 [9] Business Line Data and Key Metrics Changes - Reservoir description revenue was $85.1 million, up 2% sequentially and 8% year-over-year, with operating margins at 17%, the highest since Q2 2020 [34] - Production enhancement revenue was $40.2 million, down approximately 10% sequentially and 14% year-over-year, with operating margins at 4% [37] Market Data and Key Metrics Changes - U.S. land completion activity was down 10% sequentially, impacting production enhancement [10] - International upstream project activity continued to expand, but U.S. activity was lower than expected [14][26] Company Strategy and Development Direction - The company aims to introduce new products and services in key geographic markets, maintain a lean organization, and focus on de-leveraging [10][11] - Core Laboratories is focused on maximizing free cash flow, return on invested capital, and returning excess free cash to shareholders [11] Management Comments on Operating Environment and Future Outlook - Management noted ongoing geopolitical uncertainties affecting demand for laboratory services, particularly due to the Russia-Ukraine conflict and Middle East tensions [10][27] - The company maintains a constructive outlook on international upstream activity for 2024 and beyond, anticipating increased investment in hydrocarbon production [29] Other Important Information - The company retired $75 million in senior notes and used $71 million of its bank credit facility to fund this maturity [21] - Cash flow used in operating activities was approximately $200,000, with free cash flow negative $3.7 million due to a build in working capital [22] Q&A Session Summary - No questions were posed during the Q&A session, leading to a wrap-up by management [43]

Financial Performance - Total revenue for Q3 2023 was $125.3 million, a decrease of 2% from $127.9 million in Q2 2023[115] - Net income for Q3 2023 was $9.2 million, down 60% from $22.9 million in Q2 2023[115] - Operating income for Q3 2023 was $14.7 million, a decline of 22% compared to $18.9 million in Q2 2023[115] - For the nine months ended September 30, 2023, total revenue was $381.6 million, a 5% increase from $362.2 million in the same period of 2022[116] - Net income attributable to Core Laboratories Inc. for the nine months ended September 30, 2023, was $34.5 million, a significant increase of 171% from $12.7 million in the same period of 2022[116] - For the three months ended September 30, 2023, service revenue was $92.9 million, an increase of 6% year-over-year[139] - Total revenue for the same period was $125.3 million, showing a slight decrease of 0% compared to $125.9 million in the previous year[134] - Operating income for the three months ended September 30, 2023, was $14.7 million, remaining relatively flat compared to $14.6 million in the previous year[134] - Net income attributable to Core Laboratories Inc. for the three months ended September 30, 2023, was $9.3 million, representing a 23% increase from $7.5 million in the prior year[134] Revenue Breakdown - Services revenue accounted for 74% of total revenue in Q3 2023, while product sales made up 26%[115] - Cost of product sales was $27.6 million for the three months ended September 30, 2023, a decrease of 12% year-over-year[142] - Revenue from the Reservoir Description segment was $85.1 million for the three months ended September 30, 2023, an increase of 8% year-over-year[178] - Revenue from the Production Enhancement segment was $40.2 million for the three months ended September 30, 2023, a decrease of 14% year-over-year[181] - For the nine months ended September 30, 2023, product sales revenue totaled $104.4 million, remaining relatively flat compared to the same period in the prior year[166] Expenses and Margins - Cost of services for Q3 2023 was $69.0 million, representing 74% of service revenue, an improvement from 77% in the same period last year[119] - General and administrative expenses for Q3 2023 were $9.5 million, an increase of 63% sequentially from $5.8 million in Q2 2023[120] - General and Administrative (G&A) expense for the nine months ended September 30, 2023, was $31.6 million, an increase of $2.2 million from $29.4 million in the same period in 2022, mainly due to higher stock compensation expenses[169] - Operating margins improved to 12% for the nine months ended September 30, 2023, up from 7% in the same period of 2022[151] - Operating margins for the three months ended September 30, 2023, were 4%, down from 9% in the same period last year[183] Cash Flow and Financing - Cash flows provided by operating activities for the three months ended September 30, 2023, were $5.4 million, a decrease of 54% from $11.7 million in the same period in 2022[187] - Free cash flow for the nine months ended September 30, 2023, was $(2.5) million, compared to $3.6 million in the same period in 2022[190] - Cash flows used in financing activities for the nine months ended September 30, 2023, were nominal, driven by a $6.0 million net increase in long-term debt[188] Ratios and Financial Health - The current ratio improved to 2.71:1 in Q3 2023 from 2.23:1 in the previous quarter[114] - The debt to EBITDA ratio decreased to 2.26:1 in Q3 2023 from 2.81:1 in Q2 2023[114] - The current ratio improved to 2.71:1 from 2.45:1 year-over-year[136] - The debt to EBITDA ratio increased slightly to 2.26:1 from 2.18:1 year-over-year[136] Tax and Interest - The effective tax rate for the three months ended September 30, 2023, was 20%, compared to 33.5% for the same period in 2022[147] - Interest expense for the nine months ended September 30, 2023, was $9.8 million, up from $8.5 million in the same period of 2022, primarily due to rising interest rates[146] Market Conditions and Outlook - The geopolitical conflict between Russia and Ukraine has caused significant volatility in crude oil prices, impacting trading patterns and supply chains[130] - The company anticipates that crude oil commodity prices will remain stable or increase due to high global demand for crude oil and natural gas[129] - The company expects client activities related to increasing oil and gas reserves and production levels to continue to rise in the coming years[131] Shareholder Actions - The company repurchased 17,041 shares of common stock for an aggregate purchase price of $0.4 million during the nine months ended September 30, 2023[159] - The company continues to maintain a quarterly dividend of $0.01 per share[157]

Core Laboratories N.V. (NYSE:CLB) Q2 2023 Earnings Conference Call July 27, 2023 8:30 AM ET Company Participants Larry Bruno - Chairman and CEO Chris Hill - CFO Gwen Gresham - SVP and Head, IR Conference Call Participants Stephen Gengaro - Stifel John Daniel - Daniel Energy Partners Don Crist - Johnson Rice Operator Good morning, and welcome to the Core Lab Q2 2023 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions]. After today's presentation, there will an opp ...