Core Laboratories Inc. CLB is set to release fourth-quarter earnings on Jan. 29, after the closing bell. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a profit of 23 cents per share on revenues of $130.9 million.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Let us delve into the factors that might have influenced CLB’s performance in the to-be-reported quarter. Before that, it is worth taking a look at the company’s performance in the last reported quarter.

Highlights of Q3 Earnings & Surprise History

In the last reported quarter, the Houston, TX-based oil and gas equipment and services company’s adjusted earnings beat the consensus mark. CLB reported adjusted earnings of 25 cents per share, which was 4 cents higher than the Zacks Consensus Estimate. This was attributed to robust performance from the Reservoir Description and Production Enhancement segments. Revenues of $134.4 million also beat the Zacks Consensus Estimate by 1.1%.

CLB’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed the remaining one, delivering an average surprise of 4.63% This is depicted in the graph below:

Core Laboratories Inc. Price and EPS Surprise

Core Laboratories Inc. price-eps-surprise | Core Laboratories Inc. Quote

Trend in Estimate Revision for CLB Stock

The Zacks Consensus Estimate for fourth-quarter 2024 earnings has remained unchanged in the past 30 days. The estimated figure indicates a 21.05% year-over-year increase. The Zacks Consensus Estimate for revenues indicates an increase of 2.10% from the year-ago period’s actual.

Factors to Consider Ahead of CLB’s Q4 Release

The company primarily makes money through its reservoir description and production enhancement services, which analyze and optimize oil and gas extraction processes.

CLB’s revenues are likely to have improved in the quarter to be reported. Our model predicts fourth-quarter revenues to increase to $130.9 million from the year-ago quarter’s level of $128.2 million. This can be attributed to the strong performance of the Reservoir Description segment, which is projected to increase 4.2% year over year, reaching $88.2 million.

On a bearish note, the increase in CLB’s costs might have dented its to-be-reported bottom line. The company’s fourth-quarter total operating expenses are likely to have been $115.2 million, up 1.3% from the year-ago quarter’s level.  Moreover, its costs of services and product sales are expected to have increased from $101.5 million to $103.1 million in the same time frame. Its general and administrative expenses are expected to have increased from $8.7 million to $10.1 million in the same period.

This upward cost trend indicates the broader inflationary pressures in the economy, which could dampen the company's overall profitability despite the revenue gains.

What Does Our Model Say About CLB?

Our proven model does not predict an earnings beat for Core Laboratories this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is not the case here.

CLB’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

CLB’s Zacks Rank:  CLB currently carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some firms from the energy space that you may want to consider, as these have the right combination of elements to post an earnings beat this reporting cycle.

California Resources CRC has an Earnings ESP of +2.59% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The firm is scheduled to release earnings on March 3. Notably, the Zacks Consensus Estimate for California’s 2025 earnings per share indicates 9.54% year-over-year growth. Valued at around $4.96 billion, CRC’s shares have risen 6.1% in a year.

Ovintiv OVV has an Earnings ESP of +6.29% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 26.

In the past 60 days, the Zacks Consensus Estimate for 2025 earnings has moved up 9.4%. Valued at around $11.82 billion, OVV’s shares have gained 9.6% in a year.

APA Corporation APA has an Earnings ESP of +6.10% and a Zacks Rank #2. The firm is scheduled to release earnings on Feb. 27.

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