Dawson Geophysical (DWSN) is making waves in its industry. Investors are anticipating the release of its fiscal second-quarter earnings on May 7. The stock has staged a powerful rally off of its February lows near $50. Next year's earnings estimates have increased 26 cents to $4.93 per share. This would represent 11.4% growth over 2008 earnings.
Dawson Geophysical Company provides onshore seismic data acquisition services in the United States. It acquires and processes two dimensional (2-D), three dimensional (3-D), and multi-component seismic data for oil and gas companies and independent oil and gas operators, as well as for providers of multi-client data libraries.
The company's 2-D method involves in the collection of seismic data in a linear fashion and generates a single plane of subsurface seismic data. Its 3-D method produces a volume of seismic data, which produces precise images of the earth's subsurface.
The company will be reporting fiscal second-quarter results on May 7. Analysts are expecting $1.10 per share versus just 70 cents last year. For its fiscal first-quarter, DWSN reported $1.00 per share in earnings. Revenues grew 45% to $77.6 million.
Seismic Revenue Growth
Revenue growth in the quarter was primarily due to the expanded capabilities of existing crews which resulted in improved efficiencies and pricing as well as the fielding of two additional seismic data acquisition crews in April and September of 2007, the company's 14th and 15th crews.
Stephen Jumper, President and CEO of Dawson Geophysical, said:
Continued exploration and development activities by our client base fueled our first quarter results -- the best first quarter results in the Company's history. We are extremely pleased with our results in what has historically been our most challenging quarter due to shorter days, weather concerns, and downtime during the holiday season.
The stock has staged a powerful rally off of its February lows near $50. Next year's earnings estimates have increased 26 cents to $4.93 per share. This would represent 11.4% growth over 2008 earnings. DWSN has posted an average surprise of 10.8% over the past four quarters. The stock is attractively valued with a PEG ratio of 0.7.