Core Laboratories to Post Q2 Earnings: Key Metrics to Watch

Core Laboratories Inc. CLB is set to release second-quarter 2025 results on July 23, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of 18 cents per share on revenues of $129.3 million.

Let us delve into the factors that might have influenced CLB’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of Q1 Earnings & Surprise History

In the last reported quarter, the Houston, TX-based oil and gas equipment and services company’s adjusted earnings missed the consensus mark. CLB reported adjusted earnings of 14 cents per share, which was a cent lower than the Zacks Consensus Estimate. This was attributed to poor performance from its Reservoir Description segment. Operating revenues of $124 million were in line with the Zacks Consensus Estimate.

CLB’s earnings missed the Zacks Consensus Estimate in two of the trailing four quarters, were in line in one quarter and beat the remaining one, delivering an average negative surprise of 1.6%.

This is depicted in the graph below:

Core Laboratories Inc. Price and EPS Surprise

Core Laboratories Inc. price-eps-surprise | Core Laboratories Inc. Quote

CLB Stock’s Trend in Estimate Revision

The Zacks Consensus Estimate for second-quarter 2025 earnings has not witnessed any movement in the past seven days. The estimated figure indicates an 18.2% year-over-year decline. The Zacks Consensus Estimate for revenues also indicates a decline of about 1% from the year-ago period’s actual. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Factors to Consider Ahead of CLB’s Q2 Release

The company primarily makes money through its reservoir description and production enhancement services, which analyze and optimize oil and gas extraction processes.

CLB’s revenues are likely to have declined in the quarter to be reported. This can be attributed to the weak performance of both the Reservoir Description segment and the Production Enhancement segment. Revenues in the Reservoir Description segment are expected to decrease 0.7% year over year, reaching $85.7 million due to various factors like global economic uncertainties, geopolitical risk and trade sanctions. The Production Enhancement segment’s revenues are anticipated to decrease 1.6% year over year, reaching $43.6 million, which can be attributed to the adverse impact of the recent tariff announcements.

Moreover, the increase in CLB's costs is likely to have affected its bottom line. The company’s second-quarter total operating expenses are likely to be $115.1 million, up 0.4% from the year-ago quarter’s level.  Its services and product sales costs are also expected to increase from $102.9 million to $104.8 million in the same time frame.

On a positive note, CLB expects international project activity to be steady in the upcoming quarter, with committed long-term upstream projects from the South Atlantic Margin, North and West Africa, Norway, the Middle East and certain areas of Asia Pacific.

What Does Our Model Say About CLB Stock?

Our proven model does not conclusively predict an earnings beat for Core Laboratories this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that is not the case here.

CLB’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

CLB’s Zacks Rank: CLB currently carries a Zacks Rank #5 (Strong Sell).

Stocks With the Favorable Combination

Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

Ovintiv Inc. OVV has an Earnings ESP of +2.34% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

OVV is scheduled to release earnings on July 24. Notably, Ovintiv’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 27.8%. Valued at around $10.5 billion, OVV’s shares have lost 18.9% in a year.

TotalEnergies SE TTE has an Earnings ESP of +0.05% and a Zacks Rank #3. TTE is slated to release earnings on July 24.

The Zacks Consensus Estimate for Total Energies’ second-quarter 2025 earnings has been revised 2.4% upward in the past 30 days. Valued at around $148.9 billion, TTE’s shares have lost 9.6% in a year.

Hess Corporation HES has an Earnings ESP of +1.81% and a Zacks Rank #3. HES is scheduled to release earnings on July 30.

The Zacks Consensus Estimate for Hess’ second-quarter 2025 earnings has been revised 5.7% upward in the past 30 days. Valued at around $46 billion, HES’ shares have lost 4.4% in a year.

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This article originally published on Zacks Investment Research (zacks.com).

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