Core Laboratories to Post Q1 Earnings: Key Metrics to Watch

Core Insights - Core Laboratories Inc. (CLB) is expected to report first-quarter 2025 results on April 23, with a consensus estimate of 15 cents per share in profit and revenues of $124.1 million [1] Recent Performance - In the last reported quarter, CLB's adjusted earnings were 22 cents per share, missing the consensus estimate by 1 cent, primarily due to poor performance in the Production Enhancement segment [2] - Operating revenues for the last quarter were $129.2 million, which also fell short of the Zacks Consensus Estimate by 1.3% [2] - Over the trailing four quarters, CLB has beaten the consensus estimate twice, matched once, and missed once, with an average surprise of 4.79% [3] Earnings Estimates - The Zacks Consensus Estimate for first-quarter 2025 earnings has been revised downward by 11.8% in the past 30 days, indicating a 21.1% year-over-year decline [3] - Revenue estimates for the upcoming quarter also reflect a decline of 4.3% compared to the same period last year [3] Revenue Projections - Revenues are expected to decline due to weak performance in both the Reservoir Description and Production Enhancement segments [5] - Reservoir Description segment revenues are projected to decrease by 1.7% year-over-year to $82.8 million, influenced by global economic uncertainties and severe weather conditions [5] - Production Enhancement segment revenues are anticipated to drop by 8.6% year-over-year to $41.5 million, affected by freezing conditions impacting U.S. drilling activities [5] Cost Management - CLB's total operating expenses for the first quarter are expected to be $113.2 million, down 6.5% from the previous year [6] - Costs associated with services and product sales are projected to decrease from $104.6 million to $101.7 million, while general and administrative expenses are expected to decline from $11.8 million to $10.1 million [6] Earnings Prediction Model - The current model does not predict an earnings beat for CLB this season, as it lacks a positive Earnings ESP and holds a Zacks Rank of 4 (Sell) [8][9] - CLB's Earnings ESP stands at +2.27%, indicating a slight potential for earnings surprise, but overall expectations remain low [9]