Core Laboratories Inc. (NYSE: CLB), a leading provider of reservoir description and production enhancement services, reported disappointing financial results for the third quarter of 2024 after the market closed on Tuesday.

The company's revenue for the third quarter was $134.4 million, up 3% sequentially but only 7.2% year-over-year, missing analysts' expectations. The underperformance was attributed to the negative impacts from ongoing geopolitical conflicts and weather disruptions in the Gulf of Mexico.

Core Lab's operating income of $19.8 million and earnings per share (EPS) of $0.25 also fell short of market estimates. The company cited higher costs, unfavorable foreign exchange movements, and a one-time adjustment of $1.4 million to stock compensation expense as factors behind the disappointing profitability.

Looking ahead, Core Lab provided a downbeat outlook for the fourth quarter, projecting revenue in the range of $128.5 million to $135.5 million and EPS between $0.20 and $0.25. The company expects its U.S. land activity to trend lower due to recent industry consolidations and weak natural gas prices, while international operations will be impacted by client project delays caused by weather events.

Despite the challenging near-term outlook, Core Lab remains optimistic about a multi-year international recovery driven by underinvestment, energy security concerns, and rising crude oil demand. The company plans to continue investing in technology and pursuing growth opportunities while maintaining financial discipline.