Core Laboratories reports Q3 EPS ex-items 22c, consensus 22c

Reports Q3 revenue $125.3M, consensus $129.97M. CEO Larry Bruno stated, “Demand for Reservoir Description services continued to expand in Q3 of 2023, with sequential improvement in both revenue and operating margins. Execution of our long-term strategy to improve operational efficiencies through technological innovations, automation and digitalization is also yielding results, as Reservoir Description’s operating margins for Q3 were 17%, the highest in three years. As committed work volumes continue to build across our global laboratory network, these investments will produce superior, long-term incremental margins. Production Enhancement’s Q3 financial performance was negatively impacted by a steeper-than-expected decline in U.S. land completion activity. As a result, Core’s full company Q3 revenue was down slightly on a sequential basis. However, despite the U.S. land headwinds, we achieved sequential and year-over-year improvement in operating income, operating margins and earnings per share. Core remains focused on reducing debt and further strengthening our balance sheet, while at the same time working to increase our return on invested capital, which improved for the fourth consecutive quarter.”