Core Labs beats by $0.01, reports revs in-line; guides Q3 EPS in-line, revs in-line; guides Q4 (Dec) EPS in-line, revs in-line
Reports Q2 (Jun) earnings of $1.35 per share, excluding non-recurring items, $0.01 better than the Capital IQ Consensus Estimate of $1.34; revenues rose 1.7% year/year to $267.56 mln vs the $267.11 mln consensus.
Co issues in-line guidance for Q3, sees EPS of $1.49-1.52 vs. $1.52 Capital IQ Consensus Estimate; sees Q3 revs of $280-290 mln vs. $284.62 mln Capital IQ Consensus Estimate. Within those ranges, operating margins are expected to be approximately 32%, with year-over-year incremental margins as high as 60%. A 23% effective tax rate is assumed for the third quarter of 2014. FCF is expected to be between $77,000,000 and $81,000,000.
Co issues in-line guidance for Q4 (Dec), sees EPS of $1.56-1.61 vs. $1.61 Capital IQ Consensus Estimate; sees Q4 (Dec) revs of $285-295 mln vs. $294.63 mln Capital IQ Consensus Estimate. Within those ranges, operating margins in the quarter are expected to be approximately 33% while exiting the year at 34% with year-over-year incremental margins as high as 60%. A 24% effective tax rate is assumed for the fourth quarter of 2014 as a result of operational activity expected in higher tax rate jurisdictions. FCF for the final quarter of 2014 is expected to range between $81,000,000 and $85,000,000.