Core Laboratories Reports 7% Revenue Growth

By Tamara Parker • Thursday, October 24 06:16 • Permanent Link

Core Laboratories Inc. (NYSE: "CLB") has reported its third quarter 2024 results, showing a 3% sequential increase and over 7% year-over-year rise in revenue to $134.4 million. The operating income stands at $19.8 million, with diluted earnings per share ("EPS") of $0.25. Notably, the operating income, ex-items, a non-GAAP financial measure, was $18.2 million, up 11% sequentially and 14% year-over-year.

The company's third quarter operating margins, ex-items, of 14% saw a 100 basis points sequential improvement, while the EPS, ex-items, also saw a 14% increase both sequentially and year-over-year. Furthermore, Core Laboratories Inc. reduced net debt by $11.8 million, resulting in the debt leverage ratio reducing to 1.47. The company also announced a quarterly dividend for the fourth quarter of 2024.

In the Reservoir Description segment, the revenue for the third quarter of 2024 was $88.8 million, up 3% sequentially and over 4% from the previous year. Operating income on a GAAP basis was $16.5 million, while operating income, ex-items, was $15.4 million, yielding operating margins of over 17%, a sequential improvement of 370 basis points.

On the other hand, the Production Enhancement segment posted third quarter 2024 revenue of $45.6 million, up 3% sequentially and over 13% year-over-year. The operating income on a GAAP basis was $3.2 million, while operating income, ex-items, was $2.6 million, yielding operating margins of 6%.

The company's free cash flow for the third quarter of 2024 amounted to $10.4 million, with net debt reduced to $120.5 million and the debt leverage ratio improving to 1.47 as of September 30, 2024, from 1.66 as of June 30, 2024.

Looking ahead, Core Laboratories expects its fourth quarter 2024 revenue to range from $128.5 million to $135.5 million, with operating income projected to be $14.8 million to $17.7 million, yielding operating margins of approximately 12%. The EPS for the fourth quarter of 2024 is expected to be $0.20 to $0.25.

The company's guidance for the fourth quarter of 2024 takes into account client project delays caused by weather events in the Gulf of Mexico and assumes an effective tax rate of 20%. Following these announcements, the company's shares moved -1.0%, and are now trading at a price of $17.08. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.