Why Is Core Laboratories (CLB) Down 16% Since Last Earnings Report?

Core Laboratories Earnings Summary - Core Laboratories reported Q4 2024 adjusted earnings of 23 cents per share, exceeding the Zacks Consensus Estimate of 21 cents and up from 19 cents in the same quarter last year, driven by strong performance in the Reservoir Description segment [2] - Operating revenues for the quarter were $129.2 million, missing the Zacks Consensus Estimate of $131 million by 1.4%, but showing a 0.9% increase from $128 million in the prior year, attributed to the Reservoir Description segment's performance [3] Segment Performance - Reservoir Description: Revenues increased by 2.1% to $86.8 million from $85 million year-over-year, although it fell short of the estimate of $88.2 million. Operating income rose from $12 million to $16.5 million, surpassing the estimate of $12.6 million due to increased demand for reservoir analysis [5] - Production Enhancement: Revenues decreased by 3.6% to $42.4 million from $44 million in the prior year, missing the estimate of $42.7 million. The segment reported an operating loss of $2.6 million, contrasting with an expected operating income of $3.6 million, primarily due to reduced U.S. onshore completion activity [6] Financial Metrics - Total costs and expenses for Q4 were $115.1 million, a 1.3% increase from the previous year, slightly below the estimate of $115.2 million [7] - As of December 31, 2024, the company had cash and cash equivalents of $19.2 million and long-term debt of $126.1 million, with a debt-to-capitalization ratio of 32.9%. Net cash from operating activities was $20.6 million, leading to a positive free cash flow of $16 million after capital expenditures of $4.4 million [8] Dividend Information - The board of directors declared a quarterly dividend of 1 cent per share, unchanged from the previous quarter, payable on March 3 to shareholders of record as of February 10 [9] Market Outlook - There has been a downward trend in estimates, with a consensus estimate shift of -9.76% in the past month [10] - Core Laboratories holds a Zacks Rank 3 (Hold), indicating expectations for an in-line return in the coming months [12]