Why Core Laboratories (CLB) Stock Is Down Today

NEW YORK (TheStreet) -- Core Laboratories (CLB) stock is dropping today after the oil and gas services provider reduced its second-quarter and full-year earnings and revenue guidance. By midmorning, shares had dropped 17.6% to $155.86. 

The company expects net income for the quarter ending June between $1.32 and $1.35 a share and revenue of $265 million to $270 million. Analysts surveyed by Thomson Reuters expected earnings of $1.52 a share and revenue of $287.99 million. 

For its full year, Core guides for earnings of $5.80 to $6 a share and revenue of $1.1 billion. Analysts forecast $6.20 a share and $1.16 billion in sales. 

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"The lowered second quarter 2014 revenue and EPS guidance are primarily caused by North American clients that now project sampling and analyzing less than previously expected levels of reservoir fluids from established unconventional plays in the Marcellus, Bakken, Montney, Niabrara and Eagle Ford formations," the company said in a statement. 

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TheStreet Ratings team rates CORE LABORATORIES NV as a Buy with a ratings score of B+. TheStreet Ratings Team has this to say about their recommendation:

"We rate CORE LABORATORIES NV (CLB) a BUY. This is driven by a few notable strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, revenue growth, notable return on equity, expanding profit margins and solid stock price performance. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."

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