Core Laboratories NV, which provides services to the oil and gas industry, said Wednesday profits rose in the first quarter on increased demand for the company's reservoir technologies in North America.
The company also raised its 2008 earnings guidance, but not to the levels Wall Street had expected.
First-quarter net income grew 16 percent to $29.3 million, or $1.22 per share, from $25.26 million, or $1.04 per share, in the prior-year period. Excluding one-time items, the company said it would have earned $32.9 million, or $1.37 per share, in the latest quarter.
Revenue for the Netherlands-based company grew 15 percent in the first quarter to $179.4 million on increased business in Canada and throughout North America.
Analysts polled by Thomson Financial expected earnings per share of $1.36 per share on revenue of $179.7 million.
Core Laboratories said it expects 2008 earnings per share between $5.90 and $6.05, up from prior guidance of $5.75 and $6. Analysts have predicted higher earnings per share of $6.13 for the year on revenue of $775.9 million.
For the second quarter, Core Laboratories expects earnings between $1.46 and $1.50. Analysts project earnings per share of $1.48.
Lehman Brothers analyst James West said the company "reported solid results in what has been a somewhat difficult quarter for many oil service companies." West has an "overweight" rating on the company with a target price of $132.
Shares of Core Laboratories fell $4.06, or 3 percent, Thursday to $127.94.
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