Geospace Technologies (NASDAQ:GEOS) Posts Quarterly Earnings Results

Geospace Technologies (NASDAQ:GEOS) posted its quarterly earnings results on Friday. The oil and gas company reported ($0.75) earnings per share for the quarter, Zacks reports. Geospace Technologies had a negative net margin of 43.10% and a negative return on equity of 34.27%. The company had revenue of $15.80 million for the quarter.

Here are the key takeaways from Geospace Technologies’ conference call:

• Third-quarter results deteriorated sharply: revenue fell to $15.8 million from $24.8 million, while the company posted a $9.7 million net loss versus $800,000 of net income a year ago. Management cited geopolitical uncertainty, project timing, weaker demand, inflation, raw-material costs, and component availability.
• Smart Water revenue declined 56% year over year to approximately $4.6 million, primarily because of lower Hydroconn connector orders. Energy Solutions revenue also fell 28% in the quarter as seismic-equipment demand remained weak and customer-requested PRM scope changes delayed revenue.
• Geospace received a $10.8 million U.S. Navy contract for its Seismic Acoustic Detection and Ranging system, combining Quantum Technology Sciences’ technology with Geospace’s PRM capabilities. Revenue is expected to be recognized over time beginning in fiscal 2027, with completion planned by December 2027 and potential for later expansion if performance meets Navy expectations.
• The PRM contract’s total value remains unchanged despite engineering and infrastructure-layout revisions; the customer extended the performance period, with final revenue recognition now expected between fiscal third-quarter and fourth-quarter 2027. The company has entered full production but said no subsequent Petrobras PRM project is currently scheduled.
• Management is closely monitoring cash burn and expenses, relying on its bank credit facility and an expected Petrobras milestone payment to maintain liquidity. The company ended the quarter with $25 million of available borrowing capacity and $41 million of working capital.

Geospace Technologies Price Performance

Shares of GEOS stock opened at $5.85 on Friday. The company’s fifty day moving average price is $7.16 and its 200-day moving average price is $9.75. Geospace Technologies has a one year low of $5.49 and a one year high of $29.89. The company has a market capitalization of $75.70 million, a price-to-earnings ratio of -1.90 and a beta of 0.19.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Glenorchy Capital Ltd lifted its position in shares of Geospace Technologies by 1.0% during the second quarter. Glenorchy Capital Ltd now owns 193,884 shares of the oil and gas company’s stock worth $2,765,000 after purchasing an additional 1,946 shares during the last quarter. Geode Capital Management LLC grew its position in shares of Geospace Technologies by 2.5% in the 4th quarter. Geode Capital Management LLC now owns 146,107 shares of the oil and gas company’s stock worth $2,472,000 after buying an additional 3,507 shares during the last quarter. Bridgeway Capital Management LLC grew its holdings in Geospace Technologies by 5.4% in the third quarter. Bridgeway Capital Management LLC now owns 138,619 shares of the oil and gas company’s stock worth $2,628,000 after purchasing an additional 7,141 shares during the last quarter. State Street Corp grew its stake in Geospace Technologies by 118.3% during the 4th quarter. State Street Corp now owns 125,936 shares of the oil and gas company’s stock worth $2,130,000 after buying an additional 68,247 shares during the last quarter. Finally, Goldman Sachs Group Inc. increased its position in Geospace Technologies by 229.1% during the 4th quarter. Goldman Sachs Group Inc. now owns 60,136 shares of the oil and gas company’s stock valued at $1,017,000 after buying an additional 41,865 shares in the last quarter. 57.15% of the stock is currently owned by institutional investors.

Analyst Upgrades and Downgrades

A number of research firms have recently commented on GEOS. Weiss Ratings upgraded shares of Geospace Technologies from a “sell (e+)” rating to a “sell (d-)” rating in a research report on Tuesday, June 16th. Wall Street Zen raised Geospace Technologies from a “strong sell” rating to a “sell” rating in a research note on Saturday, May 16th. One investment analyst has rated the stock with a Sell rating, Based on data from MarketBeat.com, the stock has an average rating of “Sell”.

Geospace Technologies Company Profile

Geospace Technologies Corporation specializes in the design, manufacturing and marketing of geophysical instrumentation for seismic data acquisition. The company’s solutions address the needs of oil and gas exploration and production companies by enabling detailed subsurface imaging through advanced sensor and acquisition systems. Geospace serves both land and marine seismic markets, offering equipment that meets the rigorous demands of contemporary seismic surveys.

In its Land Products segment, Geospace Technologies offers a range of components including geophones, accelerometers, cable and recorder accessories designed to collect high-quality seismic signals in onshore environments.