Core Laboratories (NYSE: CLB) reported Q3 EPS of $0.16, $0.01 better than the analyst estimate of $0.15. Revenue for the quarter came in at $105.4 million versus the consensus estimate of $112.73 million.

Industry and Core Lab Outlook

Conversations with Core's clients broadly reaffirm the Company's expectation that international projects already underway will continue; however, the pace and breadth of recovery from COVID-19 restrictions remains uncertain, making it difficult to forecast both the level and timing of such activity. Core Lab projects international activity in the fourth quarter of 2020 may slightly to modestly improve sequentially for both operating segments, if COVID-19 travel restrictions and supply chain disruptions begin to ease.

Within Reservoir Description, Core expects reservoir fluid analysis, which accounts for more than 65% of the segment's revenue, to be more resilient as this work is diversified across the life of reservoir and less reliant on drilling and completion of new wells.

U.S. land activity improved from the lows experienced during the middle of the second quarter as the third quarter of 2020 unfolded. This trend of gradual improvement in U.S. land activity is expected to continue into the fourth quarter of 2020. As a result, Core Lab projects overall fourth quarter 2020 U.S. land activity to modestly improve sequentially, and expects Production Enhancement to continue to track or outperform activity levels in U.S. land completions.

Collectively, these trends point toward slightly to modestly improved sequential operational performance for Core Lab, barring any COVID-19-related retrenchments in client activity. Additionally, Core expects to generate positive FCF in the fourth quarter of 2020 as Core's aggressive adjustments to its cost structure further align with client activity, with continued focus on free cash generation and strategic debt reduction

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