Core Labs Cuts Q2, FY14 Outlook - Quick Facts

(RTTNews) - Oil and gas production management company Core Laboratories N.V. (CLB) said that its lowered its second-quarter and fiscal year 2014 earnings per share and revenue outlook.

Although the company continues to expect quarterly sequential improvements in all three segments, due to unexpected disappointing results in April, Core said it now projects second quarter 2014 earnings per share guidance in the $1.32 - $1.35 range with revenue ranging from $265 million to $270 million. The company said in April that it expected earnings to be in a range of $1.48 to $1.53 per share, on projected revenues between $280 million and $286 million for the second-quarter. Analysts polled by Thomson Reuters expect the company to report earnings of $1.52 per share and revenues of $287.99 million for the second-quarter. Analysts' estimates typically exclude special items.

The lowered second quarter 2014 revenue and earnings per share guidance are primarily caused by North American clients that now project sampling and analyzing less than previously expected levels of reservoir fluids from established unconventional plays in the Marcellus, Bakken, Montney, Niabrara and Eagle Ford formations. A reduction in the number and length of cores cut and analyzed from these reservoirs also is causing the decrease in the Company's expected revenue and earnings per share in the second quarter of 2014.

Free cash flow or FCF for the second-quarter is expected to be approximately $65 million, an all-time high for any second quarter in Company history.

For full year 2014, Core now projects earnings per share ranging from $5.80 to $6.00 and revenue of approximately $1.10 billion. Earlier, the company had expected earnings to be in a range of $6.00 to $6.25 per share, on projected revenue between $1.155 billion and $1.175 billion for full year 2014.

Street currently is looking for fiscal year 2014 earnings of $6.20 per share on annual revenues of $1.16 billion.

Core expects full-year 2014 FCF to be approximately $290 million, meeting or exceeding net income as it has over the past 10 years on an annual average basis. All operational guidelines exclude any foreign currency translations or any shares that may be repurchased other than those already disclosed.