NASDAQ$GEOS

Geospace Technologies Corp · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Geospace reported a profitable quarter with increased revenue and net income compared to the previous year.

Geospace Technologies reported a strong second quarter for fiscal year 2023, with revenue reaching $31.4 million, the highest in almost 9 years, and a net income of $4.7 million, driven primarily by OBX ocean bottom node rentals and Adjacent Markets segment growth.

  • Revenue reached $31.4 million, the highest quarterly figure in nearly 9 years.
  • Net income exceeded $4.6 million, demonstrating a commitment to profitability, including a $1.3 million gain from the sale of the Langfield facility.
  • OBX ocean bottom node rentals were a significant contributor to revenue and profits, with customer demand exceeding pre-pandemic levels.
  • Adjacent Markets segment revenue set a new quarterly record, driven by water meter cables and connectors, highlighting the success of strategic diversification efforts.

Headline financials

Total Revenue

$31.4M

Previous: $24.7M+27.0%
EPS (adj)

$0.35

Previous: -$0.11+418.2%
Capital Expenditures

-$1.13M

Previous: -$509K-121.2%
Free Cash Flow

$3.51M

Previous: -$1.98M+277.1%
Net Income

$4.64M

Previous: -$1.47M+414.6%
Operating Income

$4.38M

Previous: -$1.65M+365.4%
Gross Profit

$12.9M

Previous: $6.81M+90.1%
Cash & Equivalents

$22.8M

Previous: $8.21M+177.7%
Total Assets

$138M

Previous: $146M-4.9%
Stock-Based Comp

$306K

Previous: $954K-67.9%

Revenue & EPS history

Geospace · Revenue · Quarterly

$31.4M

Q2 2023+27%vs Q2 2022

Forward guidance

Geospace anticipates continued strong demand for OBX rentals and growth in the Adjacent Markets segment, while also focusing on potential contracts in the Emerging Markets segment and cost reduction efforts to maintain profitability.

Tailwinds

  • Strong demand and utilization of OBX rental fleet due to increased ocean bottom seismic service projects.
  • Durable market conditions expected to provide leverage for greater revenue and less volatility in the Oil & Gas segment.
  • Growing and reliable revenue from the Adjacent Markets segment due to domestic municipalities updating smart water meter infrastructure.
  • Potential for significant future contracts in the Emerging Markets segment utilizing SADAR acoustic arrays and unique analytics.
  • Ongoing discussions with energy companies and service providers related to carbon capture monitoring hold promise for the future.

Headwinds

  • Only a small amount of revenue was generated in the second quarter by Quantum and the Emerging Markets segment.
  • Dependence on OBX rentals makes the company vulnerable to downturns in the oil and gas industry.
  • Uncertainty regarding the timing and size of future contracts in the Emerging Markets segment.
  • Competition in the Adjacent Markets segment could impact future growth.
  • Potential delays or cancellations of customer orders could negatively impact revenue.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

-2.3%

Avg return

Earnings day

+0.4%

Avg return

5 days after

+3.7%

Avg return

30 days after

39%

25 / 64 earnings

Positive

+18.4%

Q1 2013

Best reaction

-32.5%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026-1.5%-6.5%-9.3%
Q1 2026-6.7%-2.9%+19.9%
Q4 2025-32.5%-35.6%-11.9%
Q2 2025-10.0%-7.8%-0.2%
Q1 2025-7.6%-9.1%-21.0%
Q4 2024-9.3%-11.6%-19.8%
Q3 2024+2.6%+11.8%+19.1%
Q2 2024-21.5%-24.0%-24.1%
Q1 2024-8.1%-21.0%-22.0%
Q4 2023+0.0%+2.2%+0.3%
Q3 2023+14.0%+20.9%+61.4%
Q2 2023+2.8%+16.6%+10.2%
Q1 2023+7.2%+12.9%+41.0%
Q4 2022-1.7%-3.4%-13.8%
Q3 2022-5.2%-3.0%+2.4%
Q2 2022-2.2%-10.1%+18.7%
Q4 2021-1.9%-1.9%-18.1%
Q3 2021+11.7%+23.1%+14.4%
Q2 2021+0.9%+2.5%+17.9%
Q1 2021+1.8%+3.1%+23.2%
Q4 2020+12.1%+19.1%+67.6%
Q3 2020-2.2%-4.9%-19.3%
Q2 2020+9.1%+13.3%+54.7%
Q1 2020-4.9%-0.7%-24.0%
Q4 2019-3.3%-0.2%+15.3%
Q3 2019-2.7%+2.0%-5.2%
Q2 2019+15.0%+19.2%-6.2%
Q1 2019-3.6%-3.3%+2.2%
Q4 2018+12.5%+17.9%+5.9%
Q3 2018-3.8%-9.2%+0.5%
Q2 2018+7.3%+6.1%+7.0%
Q1 2018-5.7%-7.4%-18.1%
Q4 2017+3.1%-2.9%-18.4%
Q3 2017+5.9%+3.2%+1.1%
Q2 2017+1.6%+6.2%+1.9%
Q1 2017-10.3%-6.5%-33.1%
Q4 2016-9.8%-2.8%+3.9%
Q3 2016+8.4%+8.5%+14.8%
Q2 2016+4.6%
Q1 2016+8.3%
Q4 2015-26.2%
Q3 2015+1.0%
Q2 2015-9.6%
Q1 2015-20.1%
Q4 2014-4.8%
Q3 2014+1.0%
Q2 2014-16.3%
Q1 2014-11.4%
Q4 2013-5.0%
Q3 2013-1.4%
Q2 2013+15.4%
Q1 2013+18.4%
Q4 2012-3.8%
Q3 2012-2.0%
Q2 2012-8.7%
Q1 2012+13.6%
Q1 2011+13.6%
Q2 2011-8.8%
Q4 2009-8.8%
Q4 2011-8.8%
Q3 2010-20.2%
Q3 2011-20.2%
Q4 2010-20.2%
Q2 2010+11.1%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro