The 10-second takeaway
For the quarter ended Dec. 31 (Q1), Geospace Technologies beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew significantly.
Margins grew across the board.
Geospace Technologies booked revenue of $77.8 million. The seven analysts polled by S&P Capital IQ predicted net sales of $66.1 million on the same basis. GAAP reported sales were 80% higher than the prior-year quarter's $43.3 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 $1.70. The six earnings estimates compiled by S&P Capital IQ predicted $1.18 per share. GAAP EPS of $1.70 for Q1 were 150% higher than the prior-year quarter's $0.68 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 52.2%, 450 basis points better than the prior-year quarter. Operating margin was 40.6%, 1,150 basis points better than the prior-year quarter. Net margin was 28.3%, 820 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $91.8 million. On the bottom line, the average EPS estimate is $1.76.
Next year's average estimate for revenue is $320.0 million. The average EPS estimate is $6.01.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,222 members out of 1,251 rating the stock outperform, and 29 members rating it underperform. Among 481 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 473 give Geospace Technologies a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Geospace Technologies is outperform, with an average price target of $94.83.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Geospace Technologies. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.