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Geospace Technologies Corporation (GEOS)

  • Thu, Feb. 5, 10:06 AM
    • "Commensurate with current seismic industry weakness, our first quarter of fiscal year 2015 faced significant market challenges," says Geospace (NASDAQ:GEOS) CEO Rick Wheeler. An 80% Y/Y drop in exploration-focused traditional and wireless and seismic products took a toll, as did a lack of permanent reservoir monitoring system contracts ($28M was recognized from a Statoil contract a year ago).
    • A mix shift towards low-margin products also hurt EPS, as did rental fleet depreciation and low factory productivity. Geospace expects "seismic product gross profit margins to be under significant stress throughout fiscal year 2015 due to expected lower manufacturing activity," and is cutting its FY15 capex budget for its Pinemont facility to $1M-$5M from $15M. The budget for other property and equipment has been cut to $5M-$7M from $10M.
    • Cableless OBX ocean bottom nodal products remain a strong point: Over 2,800 OBX stations were rented in FQ1, and over 1,600 are expected to be rented in FQ2.
    • FQ1 gross margin was slightly negative thanks to a $21K gross loss (compares with a $47.1M gross profit a year ago). GAAP operating expenses fell 14% Y/Y to $9.9M.
    • Shares have made new 52-week lows in morning trading.
    • FQ1 results, PR
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  • Mon, Feb. 2, 1:48 PM
    • Seismic data tech providers Geospace (GEOS +8.4%) and Ion Geophysical (IO +5.8%) are posting big gains on a day that has seen many of the company's oil/gas industry clients rally in the wake of an oil price bounce.
    • Geospace and Ion both saw their shares plunge in 2014. Geospace reports on Wednesday.
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  • Dec. 19, 2014, 2:52 PM
    • Geospace (NASDAQ:GEOS) is one of the Nasdaq's biggest gainers on options expiration day.
    • 2M shares (16% of the float) were shorted as of Nov. 28. With Geospace down 72% YTD going into today amid a major slowdown in seismic exploration work, many of those shorts likely have huge profits.
  • Nov. 21, 2014, 3:52 PM
    • Geospace Technologies (GEOS -10.2%) is downgraded to Neutral from Buy at Dougherty, which also removed its price target, as the firm sees a difficult year ahead amid weakness in the seismic market.
    • GEOS' Q4 results missed estimates due to disappointing product demand and gross margins, and industry commentary suggests the seismic market will continue weak into or perhaps through 2016, with the exception of ocean bottom seismic, the firm says.
    • GEOS shares could remain under pressure with continued quarterly losses in the near term, the firm writes but adds that the $25.28/share tangible book value provides a rough floor.
  • Nov. 21, 2014, 12:46 PM
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  • Nov. 20, 2014, 6:20 PM
    • "Demand for product sales has fallen in direct association with reduced capital spending by our customers due to diminished seismic exploration activities across most sectors of the industry," says Geospace (NASDAQ:GEOS) in its FQ4 report. "To the extent that oil and gas companies continue to reduce exploration spending to find new energy, we expect the demand for these products to remain soft."
    • FQ4 product revenue -70% Y/Y to $19.4M, thanks in large part to $38.7M drop in reservoir product revenue (the result of a major deal with Statoil concluding). Rental equipment revenue rose 167% to $6.1M.
    • Gross margin fell to 23.1% from 43.6% a year ago. GAAP opex fell 11% to $9.4M.
    • Fellow seismic equipment provider Ion Geophysical (NYSE:IO) could follow Geospace lower.
    • FQ4 results, PR
    | 1 Comment
  • Oct. 20, 2014, 3:50 PM
    • Lemelson Capital says it has taken a 2% stake in Geospace (NASDAQ:GEOS). Tthe firm notes shares trade only a little above tangible book value, and argues they have a "fair value" of $78 (nearly 3x Friday's close).
    • Earlier this year, Lemelson urged chip equipment maker Kulicke & Soffa to do a buyback; Kulicke announced one 4 months later.
    • Seismic equipment peer Ion Geophysical (NYSE:IO) is also having a good day. Both Geospace and Ion sold off on Friday after Cowen downgraded the former.
  • Oct. 17, 2014, 11:23 AM
    • Citing oil industry trends and a belief seismic product sales will remain weak, Cowen has downgraded Geospace (NASDAQ:GEOS) to Market Perform, and cut its target by $30 to $40.
    • Fellow oil/gas seismic equipment provider Ion Geophysical (IO -0.7%) is ticking lower on a day the Nasdaq is up 1.6%. Both Geospace and Ion have had rough years.
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  • Mar. 21, 2014, 4:00 PM
    • Geospace (GEOS -15.2%) client Seafloor Geophysical (SGS) has informed the company part of a prior capital commitment has been withdrawn, and that it's seeking new investors. (8-K)
    • As a result, Geospace may have to postpone delivery of a $29.4M order for 2.3K units of its deep-water OBX seafloor recorder beyond its June quarter (FQ3). Geospace isn't able to estimate when delivery will now take place.
  • Jan. 6, 2014, 11:54 AM
    • Geospace Technologies (GEOS -5.8%) is downgraded to Sell from Hold at BWS Financial.
    • GEOS' growth in the past year mostly has been the result of a one-time contract from Statoil, which will be fulfilled in H1 2014; the firm worries that the timing of the STO contract, a shrinking U.S. capex budget, a slow Canadian winter, a competitive pricing environment, and no timing as to a recovery in the U.S. exploration market could lead to a disappointing 2014.
  • Jan. 6, 2014, 9:46 AM
    • First Solar (FSLR -6.3%) has been cut to Sell by Goldman, and SolarCity (SCTY +11.2%) has been upgraded to Conviction Buy.
    • eBay (EBAY -2.7%) has been cut to Equal Weight by Morgan Stanley.
    • Riverbed (RVBD -0.6%) has been cut to Hold from Strong Buy by Needham.
    • JinkoSolar (JKS +7.6%) and Trina (TSL +5.9%) have been started at Buy by Jefferies
    • SolarWinds (SWI +1.7%) has been upgraded to Overweight by Evercore.
    • Manhattan Associates (MANH +3.2%) has been upgraded to Outperform by Raymond James.
    • UMC (UMC +0.5%) has been upgraded to Overweight by UBS.
    • Ingram Micro (IM +0.6%) has been upgraded to Overweight by Barclays.
    • Dupont Fabros (DFT +0.9%) has been upgraded to Outperform by Baird.
    • Rambus (RMBS -3.6%) has been cut to Hold by Jefferies.
    • Arris (ARRS -2.5%) has been cut to Equal Weight by Barclays.
    • Geospace Technologies (GEOS -4%) has been cut to Sell by BWS Financial.
    • Trimble (TRMB -2.1%) has been cut to Hold by Craig-Hallum.
    • Autohome (ATHM -9.6%) has been started at Neutral by Deutsche and Piper, and at Sell by Goldman, on underwriter coverage day.
  • May. 6, 2013, 12:47 PM
    Midday top 10 gainers: MBI +41%. FSGI +32%. ABFS +31%. MNGA +25%. YRCW +22%. BORN +16%. PRMW +15%. CHLN +14%. RENN +14%. YY +14%.
    Midday top 10 losers: PAL -18%. HGSH -11%. GEOS -9%. LNCO -9%. LINE -9%. CHCI -9%. VISN -8%. OSH -8%. TG -7%. LTBR -7%.
    | 1 Comment
  • Feb. 19, 2013, 12:18 PM
    Geospace Technologies (GEOS +4.7%) jumps following a favorable write-up from SA Pro author Mike Williams. Demand for Geospace's GSX wireless seismic data acquisition systems (more reliable/convenient than traditional wired systems) is growing rapidly, Williams points out, and a major Y/Y drop in opex as a % of sales in FQ1 demonstrates significant operating leverage. Geospace has been on a tear in recent months.
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  • Feb. 7, 2013, 1:05 PM
    Midday top 10 gainers: SUTR +40%. FMFC +39%. OXGN +23%. VSAT +22%. TRLG +20%. GEOS +20%. DV +18%. ARKR +17%. PLNR +16%. SCKT +15%.
    Midday top 10 losers: AKAM -16%. ADEP -16%. EPAX -15%. OSUR -14%. SGMO -14%. IRBT -13%. ATML -13%. BONT -13%. RTIX -13%. PSMI -12%.
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  • Feb. 6, 2013, 7:58 PM
    More on Geospace Technologies (GEOS): FQ1 easily beats estimates, as total sales jumped 80% Y/Y, and net income soared by 153% over the same period. Wireless product sales led the way with revenues of $46.9M, driven by strong sales of its GSX system. Reservoir products sales also increased to $11.2M, driven by the recognition of $8.7M of revenues from Statoil. Traditional seismic product sales were level with last year, while non-seismic product orders declined slightly. Shares +4.3% AH.
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  • Feb. 6, 2013, 6:45 PM
    Geospace Technologies (GEOS): FQ1 EPS of $1.70 beats by $0.49. Revenue of $77.8M beats by $12M. Shares +4.4% AH. (PR)
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Company Description
Geospace Technologies Corp is engaged in designing and manufacturing of instruments and equipment used in the oil and gas industry for acquiring seismic data to locate, characterize and monitor hydrocarbon producing reservoirs.