Pros And Cons From Core Laboratories' Q3 Earnings

Analysts Marc Binachi and Vaibhav Vaishnav, see the stock underperforming following the results and forecast. They have listed the following two pros:

• Revenue from reservoir description reached $100 million, which is in line with estimates but below consensus by $1 million. Margins improved 160 basis points sequentially to 20.3 percent and exceeded pre-announced forecast.
• Following the free cash flow generation of $32.4 million in third quarter, the year-to-date FCF topped $100 million. The company cut down its debt by $2 million.

Related Link: A Timeline Of The Walgreens-Rite Aid Merger

The following three factors are listed as cons:

• Weaker than expected forecast for fourth quarter. Revenue and EPS forecast failed to meet Cowen's estimation of $151 million and $0.42. Street consensus called for an EPS of $0.41 on revenue of $148 million.
• Consolidated margins of 15 percent were below the pre-announced estimations. In September, the company indicated that margins would top 15 percent.
• Revenue from Production Enhancement were modestly below the Street estimates of $39 million and Cowen's predictions of $41 million.

The brokerage has a Market Perform rating with a target price of $105 on the stock.

At time of writing, the stock traded down by 8.58 percent to $105.22.

Full ratings data available on Benzinga Pro.