The 10-second takeaway
For the quarter ended March 31 (Q1), ION Geophysical beat expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share didn't move. GAAP earnings per share dropped significantly.
Margins dropped across the board.
ION Geophysical logged revenue of $129.7 million. The six analysts polled by S&P Capital IQ expected revenue of $122.9 million on the same basis. GAAP reported sales were 16% higher than the prior-year quarter's $111.7 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 $0.05. The six earnings estimates compiled by S&P Capital IQ predicted $0.07 per share. Non-GAAP EPS of $0.05 were the same as the prior-year quarter. GAAP EPS of $0.01 for Q1 were 80% lower than the prior-year quarter's $0.05 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 26.9%, 990 basis points worse than the prior-year quarter. Operating margin was 1.5%, 890 basis points worse than the prior-year quarter. Net margin was 1.4%, 630 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $126.1 million. On the bottom line, the average EPS estimate is $0.09.
Next year's average estimate for revenue is $607.9 million. The average EPS estimate is $0.49.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 728 members out of 766 rating the stock outperform, and 38 members rating it underperform. Among 162 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 152 give ION Geophysical a green thumbs-up, and 10 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 $10.00.
Is ION Geophysical the right energy stock for you? Read about a handful of timely, profit-producing plays on expensive crude in "3 Stocks for $100 Oil." Click here for instant access to this free report.
- Add ION Geophysical to My Watchlist.