Dawson Geophysical Earnings: Here’s Why Investors are Happy Now

Dawson Geophysical Co. (NASDAQ:DWSN) delivered a profit and beat Wall Street’s expectations, BUT 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 up 2.61%.

Dawson Geophysical Co. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 257.14% to $0.50 in the quarter versus EPS of $0.14 in the year-earlier quarter.

Revenue: Rose 10.67% to $75.64 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Dawson Geophysical Co. reported adjusted EPS income of $0.50 per share. By that measure, the company beat the mean analyst estimate of $0.41. It missed the average revenue estimate of $80.18 million.

Quoting Management: Stephen Jumper, President and CEO of Dawson Geophysical Company, said, “We are pleased with our third quarter and nine month results. Demand for services and improved utilization rates during the third quarter of 2013 drove significant increases in revenue, net income and EBITDA from year-ago levels. Our crews are performing at high levels in terms of efficiency and productivity which continues to generate solid results. Exploration and production companies, predominantly in liquids-rich and oil plays, continue to utilize our services through various phases of the production cycle of an oil and gas reservoir.”

Key Stats (on next page)…

Revenue decreased 9.25% from $83.35 million in the previous quarter. EPS decreased 35.9% from $0.78 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.51 to a profit $0.50. For the current year, the average estimate has moved down from a profit of $2.12 to a profit of $2.07 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)