Core Laboratories to Post Q1 Earnings: Key Metrics to Watch

Core Laboratories Inc. CLB is set to release first-quarter 2025 results on April 23, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of 15 cents per share on revenues of $124.1 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 Q4 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 22 cents per share, which was a cent lower than the Zacks Consensus Estimate. This was attributed to poor performance from its Production Enhancement segment. Operating revenues of $129.2 million also missed the Zacks Consensus Estimate by 1.3%.

CLB’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, were in line in one quarter and missed the remaining one, delivering an average surprise of 4.79%.

This is depicted in the graph below:

Core Laboratories Inc. Price and EPS Surprise

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

Trend in Estimate Revision for CLB Stock

The Zacks Consensus Estimate for first-quarter 2025 earnings has been revised 11.8% downward in the past 30 days. The estimated figure indicates a 21.1% year-over-year decline. The Zacks Consensus Estimate for revenues also indicates a decline of 4.3% from the year-ago period’s actual.

Factors to Consider Ahead of CLB’s Q1 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. The revenues in the Reservoir Description segment are projected to decrease 1.7% year over year, reaching $82.8 million due to various factors like global economic uncertainties, geopolitical risk, trade sanctions and severe weather conditions in the United States and the Mediterranean regions that resulted in suspended client activities and facility closures in these areas. The revenues in the Production Enhancement segment are also projected to decrease 8.6% year over year, reaching $41.5 million, which can be attributed to the adverse impact of the freezing conditions on the onshore U.S. drilling and completion activity.

On a positive note, the reduction in CLB's costs is likely to have boosted its bottom line. The company’s first-quarter total operating expenses are likely to be $113.2 million, down 6.5% from the year-ago quarter’s level. Moreover, its services and product sales costs are expected to decrease from $104.6 million to $101.7 million in the same time frame. Its general and administrative expenses are expected to decrease from $11.8 million to $10.1 million in the same period.

These cost reductions should have provided modest relief, helping to partially offset the impact of lower revenues.(Find the latest EPS estimates and surprises on Zacks Earnings Calendar).

What Does Our Model Say About CLB Stock?

Our proven model does not 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 +2.27%. 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 #4 (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.

Antero Resources Corporation AR has an Earnings ESP of +6.35% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

AR is scheduled to release earnings on April 30. Notably, the Zacks Consensus Estimate for Antero Resources’ 2025 earnings per share indicates 1514.29% year-over-year growth. Valued at around $10.71 billion, AR’s shares have gained 17.5% in a year.

Expand Energy Corporation EXE has an Earnings ESP of 9.44% and a Zacks Rank #1. EXE is slated to release earnings on April 29.

The Zacks Consensus Estimate for Expand Energy’s 2025 earnings per share indicates 475.89% year-over-year growth. Valued at around $24.78 billion, EXE’s shares have gained 20.4% in a year.

Comstock Resources, Inc. CRK has an Earnings ESP of 22.33% and a Zacks Rank #3. CRK is scheduled to release earnings on April 30.

The Zacks Consensus Estimate for Comstock Resources’ 2025 earnings per share indicates 383.33% year-over-year growth. Valued at around $5.79 billion, CRK’s shares have surged 103.2% in a year.

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

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