Friday, FBR Capital Markets reiterated Core Laboratories NV (CLB) stock with an Outperform rating and a price target of $149. The brokerage increased its 2009 fourth quarter EPS estimate to $1.27 from $1.21, and its 2009 estimate to $5.18 from $5.13. The brokerage maintained its 2010 EPS estimate of $5.35 and its 2011 estimate of $6.75.
Analyst Robert MacKenzie expects Core Lab to report fourth quarter EPS substantially above market expectations. The analyst raised fourth quarter estimate to $1.27, this compares to company guidance of $1.15 to $1.20 and the current consensus of $1.20.
The analyst said that this estimate may have additional upside to as high as $1.31, depending on the mix of work Core received during the quarter. The analyst's estimates for 2010 and beyond remain unchanged for now and would be updated following the earnings release.
The analyst noted that the primary driver for this surprise should be a snap-back in the number of gas wells completed in the United States, which reduced the backlog of drilled-but-not-completed wells by 400 to 500 this quarter, according to Halliburton. Furthermore, the majority of this reduction came from Barnett Shale gas wells, for which Core Lab tends to provide extensive services.
The analyst recommends investors add to positions in CLB in advance of its fourth quarter earnings release, expected after the market close on February 10. The analyst reiterated his Outperform rating and price target of $149, based on 22x his 2011 EPS estimate of $6.75 and is once again making CLB an FBR Top Pick.
Currently, CLB is down $1.16 or 0.99% and trading at $115.44.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.