NASDAQ$GEOS

Geospace Technologies Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Geospace Technologies reported a profitable third quarter and nine-month earnings, with Q3 revenue reaching a nine-year high.

Geospace Technologies reported a strong third quarter with a 58% increase in revenue to $32.7 million and a net income of $3.2 million, driven by increased demand in the Oil and Gas and Adjacent Markets segments. The company's OBX ocean bottom node rental fleet is near full utilization, and the Adjacent Markets segment achieved record quarterly revenue. Geospace also strengthened its balance sheet, increasing cash and cash equivalents to $27.3 million.

  • Q3 revenue increased by 58% year-over-year, reaching $32.7 million, the highest in nine years.
  • Net income for Q3 was $3.2 million, or $0.24 per diluted share, compared to a net loss of $6.6 million in the same quarter last year.
  • The Oil and Gas segment benefited from near-full utilization of the OBX ocean bottom node rental fleet and a $20 million contract for the Mariner® nodal system.
  • The Adjacent Markets segment achieved record quarterly revenue, driven by water meter cables and industrial sensor products.

Headline financials

Total Revenue

$32.7M

Previous: $20.7M+58.1%
EPS (adj)

$0.24

Previous: -$0.51+147.1%
Capital Expenditures

-$1.86M

Previous: -$913K-103.9%
Free Cash Flow

$1.37M

Previous: -$7.49M+118.2%
Net Income

$3.23M

Previous: -$6.57M+149.1%
Operating Income

$3.15M

Previous: -$6.53M+148.1%
Gross Profit

$14M

Previous: $3.65M+282.9%
Cash & Equivalents

$27.3M

Previous: $7.47M+265.1%
Total Assets

$146M

Previous: $142M+2.3%
Stock-Based Comp

$398K

Previous: $388K+2.6%

Revenue & EPS history

Geospace · Revenue · Quarterly

$32.7M

Q3 2023+58.1%vs Q3 2022

Forward guidance

Geospace anticipates continued favorable performance throughout fiscal year 2023 and into 2024, although there may be lulls in some areas of commerce.

Tailwinds

  • Demand for Oil and Gas segment products is expected to remain strong into fiscal year 2024.
  • Long-term demand for Adjacent Markets products is expected to persist as municipalities update smart water meter systems.
  • Recently completed credit agreement with Woodforest National Bank will provide borrowings to significantly boost liquidity.
  • Expecting continuation of favorable performance throughout fiscal year 2023 and into 2024.
  • New Mariner® nodal system contract expected to generate revenue.

Headwinds

  • Potential lulls in some elements of commerce are anticipated.
  • Uncertainty regarding the timing of additional contracts in perimeter security and energy transition applications.
  • Dependence on commodity price levels.
  • Sensitivity to short term backlog.
  • Risk of delayed or cancelled customer orders.

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 Q3 2023

Historical avgQ3 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%

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