ION Geophysical Corporation (NYSE:IO) had a loss and missed Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 8.56%.
ION Geophysical Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased to $0.0 in the quarter versus EPS of $0.08 in the year-earlier quarter.
Revenue: Rose 14.93% to $120.92 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: ION Geophysical Corporation reported adjusted EPS loss of $0 per share. By that measure, the company missed the mean analyst estimate of $0.07. It missed the average revenue estimate of $127.48 million.
Quoting Management: Brian Hanson, the Company’s President and Chief Executive Officer, commented, “Overall, the first half of the year was challenging. While our first half revenues were up 16%, our operating margins were down due to cost overruns as we completed acquisition on our first 3D marine program. The pipeline of new venture programs looks solid but is heavily weighted toward the back half of the year. Once again, we are acquiring data in the Arctic, and our land ResSCAN™ programs are gearing up this coming quarter. As a result, we have only spent about 25% of our planned 2013 Cap Ex budget in the first half of the year. Our data processing business again generated record revenues, driven by strong demand in Europe, the Middle East and the Gulf of Mexico, and continued demand for our broadband processing solution, WiBand™. Our systems and software businesses are being pressured by consolidation in the towed steamer market and a reduction in seabed contractors, with RXT’s recent filing for bankruptcy. We expect to see modest improvements in these areas of our business over the back half of the year.”
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