Core Laboratories (NYSE: CLB), a mid-cap oil servicer focusing on production enhancement and research optimization, has recently been savaged since giving lower revenue and earnings guidance. Core lowered full-year earnings guidance from $6.00-$6.25 to $5.80-$6.00 per share. Revenue for the second quarter is now estimated to be between $265 and $270 million; a number less than the previous estimate, but still above last year's second quarter results. The analysts estimated revenue to be around $288 million.
The reaction was pretty brutal, with the stock declining by as much as 20% on the day of the announcement, partly because this was a genuine downward revision on the part of management, but also because consensus expectations got too optimistic.
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