Earnings Preview for Core Laboratories

Core Laboratories CLB will be releasing its next round of earnings this Wednesday, April 21. For all of the relevant information, here is your guide for Wednesday's Q1 earnings announcement.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts covering Core Laboratories modeled for quarterly EPS of $0.13 on revenue of $110.70 million. In the same quarter last year, Core Laboratories announced EPS of $0.31 on revenue of $152.40 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Wednesday, earnings would be down 58.06%. Revenue would have fallen 27.36% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance

Shares of Core Laboratories were trading at $27.36 as of April 19. Over the last 52-week period, shares are up 103.62%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Core Laboratories is scheduled to hold the call at 08:30:00 ET and can be accessed here.