ION Geophysical (IO), is a technology focused company, which engages in the provision of geoscience technology, services, and solutions to the oil and gas industry. It operates through the following segments: E&P Technology and Services and E&P Operations Optimization.
The E&P Technology and Services segment creates digital data assets and delivers services that improve decision-making, mitigate risk, and maximize portfolio value for E&P companies.
The Operations Optimization segment develops mission-critical subscription offerings and engineering services that enable operational control and optimization offshore.
Why did ION Geophysical (IO) surge 103%?
The reason why ION Geophysical surged 103% is because of it’s earnings report. The report beat analysts expectations by 135.48% or +0.33 per share.
The sustainability of the stock’s immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management’s commentary on the earnings call.
Ion Geophysical shares have lost about 79.8% since the beginning of the year versus the S&P 500’s decline of -11.2%.
What’s next for ION Geophysical (IO)?
While Ion Geophysical has underperformed the market so far this year, the question that comes to investors’ minds is: what’s next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company’s earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
We achieved the best first quarter performance in six years despite challenges from both coronavirus and oil price volatility, Our strong revenues of $56 million generated positive operating income and $23 million in Adjusted EBITDA, and, as a result, we expect our liquidity position to improve as revenues are collected in the second quarter. Our first quarter results reflect the value of our offshore data library and validate the combined effectiveness of our strategic refocus and over $20 million cost reductions. Our team creatively closed a number of large multi-client contracts, some of which were delayed from the fourth quarter, even after E&P market dynamics changed. I remain confident in ION’s value proposition to cost-effectively support customers’ data-driven decision-making in this lower-for-longer exploration and production environment.”
Chris Usher, ION’s President and Chief Executive Officer
