Markets
BAK

Core Laboratories (CLB) Q4 Earnings in Line, Revenues Top

Oilfield services company Core Laboratories N.V. 's CLB fourth-quarter 2016 adjusted diluted earnings of 41 cents per share came in line with the Zacks Consensus Estimate. However, the bottom line was substantially below the year-ago quarter earnings of 65 cents per share.

Total revenue of $150 million surpassed the Zacks Consensus Estimate of $145 million by 3.17% but was nearly 20.8% below the prior-year quarter level of $183 million.

Segment Performance

Reservoir Description: Segment revenues were $99.4 million compared with $114.8 million in fourth-quarter 2015. Lower activity levels hampered the results.

Operating income (excluding foreign exchange losses) for the segment was about $17.3 million in the reported quarter. Operating margin for the quarter was around 17.9%.

Production Enhancement: Segment revenues were approximately $43.2 million in the reported quarter as against $56.6 million in fourth-quarter 2015. Reduced North American drilling activity hurt the results.

Operating income (excluding foreign exchange losses) for the segment was about $2.9 million in the reported quarter.

Reservoir Management: Segment revenues of about $7 million plunged nearly 36.4% year over year. The segment incurred an operating loss of $1.3 million.

Core Laboratories N.V. Price, Consensus and EPS Surprise

Core Laboratories N.V. Price, Consensus and EPS Surprise | Core Laboratories N.V. Quote

Balance Sheet and Free Cash Flow

As of Dec 31, 2016, Core Laboratories had cash and cash equivalents of $14.8 million. Capital expenditures for the fourth quarter were $3.6 million.

The company generated free cash flow of approximately $19.6 million in the fourth quarter of 2016.

Quarterly Dividend and Share Repurchase

On Jan 10, 2017, the company's board of directors announced the first-quarter dividend. Core Laboratories will pay a cash dividend of 55 cents per share. This is same as the previous payout. The dividend will be paid on Feb 17, to shareholders on record as of Jan 20, 2017.

Guidance

For the first quarter, Core Laboratories expects earnings of 42 cents per share. The company expects first-quarter revenues of $150 million.

Zacks Rank and Stocks to Consider

Currently, Core Laboratories holds a Zacks Rank #3 (Hold).

Some better-ranked players from the broader energy sector include Braskem S.A. BAK , McDermott International, Inc. MDR and Suncor Energy Inc. SU . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

In the last four quarters, Braskem posted an average positive earnings surprise of 105.5%.

In the last quarter, McDermott posted a positive earnings surprise of 250.00%.

In the last quarter, Suncor posted a positive earnings surprise of 300.00%.

Zacks' Top Investment Ideas for Long-Term Profit

How would you like to see our best recommendations to help you find today's most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

McDermott International, Inc. (MDR): Free Stock Analysis Report

Suncor Energy Inc. (SU): Free Stock Analysis Report

Core Laboratories N.V. (CLB): Free Stock Analysis Report

Braskem S.A. (BAK): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

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


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

In This Story

BAK CLB SU

Other Topics

Earnings Stocks

Latest Markets Videos

    Zacks

    Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

    Learn More