Core Laboratories Q1 Profit Meets View, But Revenue Miss; Backs 2014 EPS Outlook

(RTTNews) - Oil and gas production management company Core Laboratories N.V. (CLB) reported Wednesday a profit for the first quarter that increased from last year, reflecting improved margins and a 1 percent revenue growth. Adjusted earnings per share matched analysts' expectations, while quarterly revenues missed their estimates.

The company also provided earnings forecast for the second quarter, in line with Street view, and reaffirmed its earnings forecast for the full-year 2014, while trimming annual revenue outlook.

Core noted that this was the most profitable ever first quarter in the company;s history, with all-time highs for earnings per share, net income, and revenue.

The Amsterdam, Netherlands-based service provider for oil companies reported net income of $61.06 million or $1.35 per share for the first quarter, higher than $56.52 million or $1.22 per share in the prior-year quarter.

Excluding the effect of the weather disruptions and project delays, and excluding foreign exchange, adjusted net income for the latest quarter was $62.28 million or $1.45 per share.

On average, 14 analysts polled by Thomson Reuters expected the company to report earnings of $1.45 per share for the quarter. Analysts' estimates typically exclude one-time items.

Total revenues for the quarter edged up 1 percent to $262.9 million from $260.93 million in the same quarter last year, but missed eight Wall Street analysts' consensus estimate of $283.02 million.

The lower than expected revenues were attributable to the transitory weather impact and delays of certain deepwater development projects.

Segment-wise, revenues from reservoir description operations remained flat with last year at $125.26 million, and production enhancement operations revenue grew 3 percent to $110.28 million from last year. Meanwhile, revenues from the reservoir management operations edged down to $27.37 million from the prior-year quarter.

Operating income grew to $82.83 million from $79.04 million in the year-ago quarter. Adjusted operating margins expanded 180 basis points to an all-time quarterly record of 32 percent, even though revenue growth was lower than expected.

On April 14, the company's Board announced a quarterly cash dividend of $0.50 per share of common stock payable for the second quarter, payable on May 23 to shareholders of record on April 25 2014. Dutch withholding tax will be deducted from the dividend at a rate of 15 percent.

Looking ahead to the second quarter, Core expects earnings in a range of $1.48 to $1.53 per share, on projected revenues between $280 million and $286 million. Analysts expect the company to report earnings of $1.53 per share on quarterly revenues of $290.83 million.

For fiscal 2014, the company continues to anticipate earnings in a range of $6.00 to $6.25 per share, while trimming revenue forecast to between $1.155 billion and $1.175 billion from the prior guidance between $1.16 billion and $1.181 billion. Street is currently looking for full-year 2013 earnings of $6.23 on annual revenues of $1.18 billion.

CLB closed Wednesday's regular trading session at $213.69, down $0.21 or 0.10% on a volume of 0.46 million shares. The stock lost a further $9.69 or 4.53% in after-hours trading.