Core Laboratories News: CLB Stock Crumbles 21% on Guidance Cut

Core Laboratories (NYSE:CLB) news for Tuesday concerning a guidance update for the fourth quarter of 2019 has CLB stock falling hard.

Core Laboratories News: CLB Stock Crumbles 21% on Guidance Cut

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A Core Laboratories news release reveals that the company is now expecting earnings per share to range from 37 cents to 38 cents in the fourth quarter of 2019. That’s bad news for CLB stock with Wall Street’s looking for EPS of 44 cents for the quarter.

The Core Laboratories news also notes that it expects revenue between $154 billion and $156 billion during the quarter. This will also have it missing analysts’ estimates of $162.32 billion for the period.

According to the Core Laboratories news release, there are a few major factors behind this lower guidance. The company blames a stronger than expected decline in U.S. onshore activity for the weak Q4 outlook.

Here’s what the Core Laboratories new release says about the issue.

“The U.S. rig count quarter-to-date is down approximately 11%, with U.S. completion activity tracking downward over 20%, primarily affecting Core’s Production Enhancement segment. In addition, client discussions required to advance large international and offshore projects have progressed slower than expected.”

Core Laboratories also reveals its outlook for Q1 2020 in the update. It expects per-share earnings of 39 cents to 41 cents on revenue of $159 billion to $164 billion. Wall Street’s estimates for the quarter are sitting at 44 cents per share and $163.43 billion.

The Core Laboratories news release also reveals a change to dividends. The company is going to be reducing future dividends to 25 cents per share. This change will go into effect starting in the first quarter of 2020.

CLB stock was down 20.63% as of Tuesday afternoon.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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