Core Labs (CLB) Cuts Q3 Outlook; Cites Lower Rig Count, Lagging Activity Improvement
Tweet Send to a FriendGet Alerts CBL Hot Sheet
Price: $22.72 +1.52%
EPS Growth %: 0.0%
Financial Fact:
Other consolidated subsidiaries: -6.08M
Today's EPS Names:
CO, JW-A, FDS, More
EPS Growth %: 0.0%
Financial Fact:
Other consolidated subsidiaries: -6.08M
Today's EPS Names:
CO, JW-A, FDS, More
Trade CBL Now!
Core Laboratories N.V. (NYSE: CLB) expects 3rd quarter 2012 consolidated results to be below the prior guidance given on its 2nd quarter 2012 earnings release and subsequent earnings conference call. As discussed on that call, guidance was based upon a flat North American rig count along with a view to improving activity outside of North America. Since the end of the 2nd quarter 2012, the Baker Hughes land rig count for the United States is actually 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 August 2012 and has since dropped by 22 units. Over the same period, the gas rig count has decreased by 60 units.
This reduction in activity has impacted the Company's Production Enhancement segment, which is more levered to activity in North America. Expected revenues for Production Enhancement in the 3rd quarter 2012 were impacted proportionally with that downward change in industry activity levels. In response, Core has reduced variable and fixed cost components in this business segment to mitigate potential impact on its operating margins going forward. Core now expects 3rd quarter 2012 revenues for its Production Enhancement segment to be approximately $100 million. While this is slightly higher than reported for the 2nd quarter 2012, it is not at the level expected before this recent fall in activity and rig count. Core's Reservoir Description segment, which is more levered to the international activity levels, is expected to improve year-over-year with near-record quarterly revenues coupled with margin expansion between 200 and 300 basis points. The Company's Reservoir Management segment appears minimally impacted by the decline in North America activity levels.
As a result of these changes in activity levels from prior expectations, the Company now believes that its 3rd quarter 2012 consolidated revenues will be within the $240 million to $245 million range with EPS in the range of $1.09 to $1.13 per share. The Street sees revs of $255.9 million and EPS of $1.22.
For the remainder of the year, Core expects activity levels to be similar to those experienced in the 3rd quarter 2012. Should activity levels remain the same, Core would expect 4th quarter 2012 revenues and earnings to be similar to the 3rd quarter 2012.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
This reduction in activity has impacted the Company's Production Enhancement segment, which is more levered to activity in North America. Expected revenues for Production Enhancement in the 3rd quarter 2012 were impacted proportionally with that downward change in industry activity levels. In response, Core has reduced variable and fixed cost components in this business segment to mitigate potential impact on its operating margins going forward. Core now expects 3rd quarter 2012 revenues for its Production Enhancement segment to be approximately $100 million. While this is slightly higher than reported for the 2nd quarter 2012, it is not at the level expected before this recent fall in activity and rig count. Core's Reservoir Description segment, which is more levered to the international activity levels, is expected to improve year-over-year with near-record quarterly revenues coupled with margin expansion between 200 and 300 basis points. The Company's Reservoir Management segment appears minimally impacted by the decline in North America activity levels.
As a result of these changes in activity levels from prior expectations, the Company now believes that its 3rd quarter 2012 consolidated revenues will be within the $240 million to $245 million range with EPS in the range of $1.09 to $1.13 per share. The Street sees revs of $255.9 million and EPS of $1.22.
For the remainder of the year, Core expects activity levels to be similar to those experienced in the 3rd quarter 2012. Should activity levels remain the same, Core would expect 4th quarter 2012 revenues and earnings to be similar to the 3rd quarter 2012.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Five Below (FIVE) Tops Q1 EPS by 1c, Boosts FY13 Outlook
- PVH Corp. (PVH) Tops Q1 EPS by 56c; Issues Q2 EPS, Revs Outlook
- Tetra Tech (TTEK) Sees Increased Costs in Q3; Approves $100M Buyback
Create E-mail Alert Related Categories
Guidance, Hot GuidanceRelated Entities
Earnings
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
