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ION Geophysical Increases Sales but Misses Estimates on Earnings

By Seth Jayson – Updated Apr 10, 2017 at 1:33PM

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Just the facts, Fool.

ION Geophysical (NYSE: IO) reported earnings on April 30. Here are the numbers you need to know.

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.

Revenue details
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 details
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.

Margin details
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.)

Looking ahead
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.

Investor sentiment
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.

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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 has no position in any of the stocks mentioned. 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.

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