UPDATE: Core Lab Revises Down Guidance for Q3 Results, Shares Dive 16% on Huge Volume, But Seen Oversold

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Shares of Netherlands-based Core Laboratories N.V. ( CLB ), a provider of reservoir management systems for oil and gas companies, are down 16% at near $101.60 on volume of 2.04 million vs the 30-day avg of 287,994 after it late yesterday said it expects Q3 2012 results to be below its prior guidance.

In trading on Tuesday, shares of Core Laboratories N.V. entered into oversold territory, according to a report carried by Forbes.

Previous guidance was based on a flat North American rig count along with a view to improving activity outside of North America. Since the end of Q2 2012, the Baker Hughes land rig count for the U.S is down by 112 units, roughly 6%, while the Canadian rig count is 30% below prior year levels. The oil rig count peaked at 1,432 in early Aug. 2012 and has since dropped by 22 units. Over the same period, the gas rig count has decreased by 60 units.


According to MarketWatch, CLB now sees earnings for the current quarter in a range of $1.09 to $1.13 a share, with revenue pegged at $240 million to $245 million. Core Lab said it will report third-quarter results Oct. 17. As for the rest of 2012, Core Lab said management anticipates that drilling activity will be similar to third-quarter levels, implying flat profit and revenue sequentially for the fourth quarter.

CLB trades within a 52-week range of $82.74 - $143.21. Shares have increased 13% in the last 12 months.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

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This article appears in: Investing , Commodities

Referenced Stocks: CLB

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