Geospace Technologies Corporation NASDAQGEOS Reports Third Quarter 2024 Financial Results
Intellectia.AI1970-01-01
Geospace Technologies Corporation (NASDAQ:GEOS) Reports Third Quarter 2024 Financial Results
Geospace Technologies Corporation today announced its financial results for the third quarter ended June 30, 2024. Below is a detailed summary of the report.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | YoY Change |
|---|---|---|---|
| Revenue | $25.9 million | $32.7 million | -20.83% |
| Net Income | ($2.1 million) | $3.2 million | -165.63% |
| Earnings Per Share (EPS) | ($0.16) | $0.24 | -166.67% |
In the third quarter of 2024, Geospace Technologies reported a decline in revenue by approximately 20.83% and a shift to a net loss from the net income reported in the same quarter of the previous year. This performance is in contrast to the ongoing profitable performance for the nine months ending June 30, 2024.
Revenue Performance by Segment
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | YoY Change | Nine-Month 2024 Revenue | Nine-Month 2023 Revenue | YoY Change |
|---|---|---|---|---|---|---|
| Oil & Gas Markets | $9.2 million | $17.7 million | -48.02% | $59.9 million | $56.2 million | 6.6% |
| Adjacent Markets | $16.0 million | $14.9 million | 7.38% | $38.0 million | $38.4 million | -1.0% |
| Emerging Markets | $640,000 | $109,000 | 487.16% | $2.0 million | $393,000 | 408.66% |
The Oil & Gas Markets segment experienced significant revenue decline due to gaps in OBX rental contracts caused by weather delays and customer operational difficulties. In contrast, the Adjacent Markets segment achieved record revenue, largely driven by increased sales of water meter cables and connectors. Meanwhile, revenue in Emerging Markets surged mainly due to the fulfillment of a government contract.
Key Operational Data
| Metric | June 30, 2024 |
|---|---|
| Cash and Short-term Investments | $42.5 million |
| Additional Borrowing Availability | $15 million |
| Shares Repurchased | 512,000 |
| Additional Buyback Program | $2.0 million |
Geospace Technologies ended Q3 2024 with robust liquidity, holding $42.5 million in cash and short-term investments and no debt, along with $15 million available under its credit agreement.
Management Comments
Walter R. ("Rick") Wheeler, CEO, noted the ongoing profitability for the nine-month period and highlighted the company's successful balance sheet management. He mentioned the negative impact on the Oil & Gas segment due to rental fleet gaps but praised the Adjacent Markets segment for achieving record revenues. Wheeler also emphasized the strategic importance of product and market diversity.
Dividends and Share Repurchase Program
- Share Repurchase: The company has repurchased 512,000 shares and authorized an additional $2.0 million for share buybacks.
- Dividends: No information provided.
Forward Guidance
The company did not provide explicit forward guidance but anticipates the resumption of delayed work in the fourth quarter and expects substantial revenue contributions from the Aquana smart water valve and IoT technology products.
Stock Price Movement
Post-earnings release, the stock price showed a positive change of 2.95%.
For more detailed information on Geospace Technologies' financial performance and forward-looking statements, please refer to the company's official release.
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