Oilfield service company,
Core Laboratories N.V.
) announced that it expects second quarter 2014 earnings per share
(EPS) in the band of $1.32 to $1.35, lower than its previous
projection of $1.48 to $1.53. The company also lowered its 2014 EPS
guidance to $5.80 to $6.00 from $6.00 to $6.25. The news triggered
an 11.7% share price fall in the NYSE.
Projected revenues were also lowered, with $265.0-$270.0 million
now estimated for the second quarter instead of $280.0-$286.0
million and $1.10 billion forecasted for the full year rather than
$1.16 to $1.18 billion.
Core Labs revealed that its clients in North America project
lower-than-expected reservoir fluids levels from developed
unconventional resources in Bakken, Marcellus, Niabrara, Montney
and Eagle Ford formations. This compelled the company to lower its
EPS and revenue guidance.
The Netherlands-based Core Labs provides reservoir management and
production enhancement services to the oil and gas industry on a
global basis. The company operates in over 50 countries and divides
its operations in three principal business lines: Reservoir
Description, Product Enhancement, and Reservoir Management.
Core Labs' deep portfolio of proprietary products and services
positions it to operate successfully in the environment of low
commodity prices and growing maturity in the global hydrocarbon
reserve base. However, as Core Labs generates approximately 50% of
its total revenue from international markets, the company is
exposed to risks associated with doing business abroad.
As such Core Labs carries a Zacks Rank #3 (Hold), implying that it
is expected to perform in line with the broader U.S. equity market
over the next one to three months.
Meanwhile, one can look at better-ranked players in the same
Emerge Energy Services LP
Exterran Holdings Inc.
Flotek Industries Inc.
). All these stocks sport a Zacks Rank #1 (Strong Buy).
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CORE LABS NV (CLB): Free Stock Analysis Report
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