Core Laboratories Earnings: Strong International Activity Offset Standard Seasonal Headwinds

Core Laboratories’ first-quarter revenues increased 11% year over year and 1% sequentially, reflecting standard seasonal declines amidst an overall strengthening oil and gas market worldwide. The firmwide operating margin was similarly affected, expanding 500 basis points year over year while holding flat sequentially. We’ll incorporate the firm’s full financial and operating results shortly, but after this first look, we maintain our $29 fair value estimate. Our wide moat rating is unchanged following the results.