Core Laboratories Inc. (NYSE: CLB) saw its stock price plummet 5.80% in pre-market trading on Wednesday, as the company faces headwinds from both company-specific factors and broader energy sector challenges. The decline comes in the wake of Core Laboratories' disappointing first-quarter 2025 earnings report and amid ongoing pressure on the global oil industry.

Core Laboratories, a leading provider of reservoir description and production enhancement services for the oil and gas industry, reported its Q1 2025 results last week. The company's adjusted earnings per share of $0.14 fell short of analyst expectations of $0.15, while revenue of $123.6 million declined 4.67% year-over-year and missed forecasts by $1.18 million. Despite improvements in free cash flow and debt reduction, the earnings miss appears to have shaken investor confidence.

The broader energy sector is also facing significant challenges, contributing to CLB's decline. Global crude oil prices have fallen by more than 5% over the past week, with West Texas Intermediate (WTI) hovering just under $60 per barrel. This price drop, coupled with concerns about increased OPEC+ output and potential economic impacts from President Trump's tariffs, has created a bleak outlook for the oil industry. Additionally, the oilfield services sector, in which Core Laboratories operates, is particularly vulnerable to reduced drilling activity if oil prices remain low.