Core Laboratories reports Q1 non-GAAP EPS 19c, consensus 16c

Reports Q1 revenue $129.6M, consensus $124.44M. CEO Larry Bruno stated, “Core Lab delivered modest revenue growth and overcame the typical sequential seasonal decline in client activity that we often experience between the fourth and first quarters. Strong demand for both our Reservoir Description laboratory services and Production Enhancement’s completion diagnostic services drove the quarter. Core’s investments to expand laboratory capabilities in the Middle East and other international markets prior to and during the global pandemic are now delivering results, as long-delayed client analytical projects progress into the early stages of execution. We expect that these prior investments in international growth opportunities will generate superior, long-term returns. Production Enhancement’s sequential financial performance was driven by higher demand for both U.S. and international completion diagnostics, as Core’s clients seek to evaluate new completion designs for optimizing hydrocarbon production. Despite quarter-over-quarter softness in U.S. completion activity, U.S. product sales also improved sequentially. Core Lab used excess free cash to reduce debt by $3M in Q1 2024, and will continue to remain focused on executing strategic business initiatives while reducing our leverage ratio.”