Why Core Lab's Shares Popped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of oil and gas service company Core Laboratories (NYSE: CLB  ) jumped as much as 10% today after the company released first quarter earnings.

So what: Revenue rose 11.4% in the quarter, to $260.9 million, and net income was up 4.8% from a year ago to $56.5 million, or $1.22 per share. Analysts expected revenue of $245.0 million and earnings of $1.15 per share, so the results easily passed Wall Street's view. 

Now what: The reservoir management segment was the most impressive, with revenue up 32%, and operating income rising 24%. Oil and gas are becoming harder to find and harder to evaluate, so the services that Core Labs provides are crucial to the industry. Shares are now trading at 23 times forward earnings, not a steal given the company's growth level, but I still think shares can move higher after another positive quarter.

Interested in more info on Core Laboratories? Add it to your watchlist by clicking here.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2372098, ~/Articles/ArticleHandler.aspx, 12/21/2014 4:17:13 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement