The 10-second takeaway
For the quarter ended Sep. 30 (Q3), ION Geophysical whiffed on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly and GAAP earnings per share expanded significantly.
Margins grew across the board.
ION Geophysical recorded revenue of $136.3 million. The one analyst polled by S&P Capital IQ hoped for revenue of $162.4 million on the same basis. GAAP reported sales were 18% higher than the prior-year quarter's $115.7 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.09. The two earnings estimates compiled by S&P Capital IQ averaged $0.14 per share. GAAP EPS of $0.09 for Q3 were 50% higher than the prior-year quarter's $0.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 41.0%, 290 basis points better than the prior-year quarter. Operating margin was 18.4%, 240 basis points better than the prior-year quarter. Net margin was 11.1%, 330 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $177.2 million. On the bottom line, the average EPS estimate is $0.19.
Next year's average estimate for revenue is $556.5 million. The average EPS estimate is $0.45.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 739 members out of 778 rating the stock outperform, and 39 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 163 give ION Geophysical a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ION Geophysical is outperform, with an average price target of $11.00.
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