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Shares of Geospace Technologies Corporation GEOS have lost 7.6% since the company reported its earnings for the quarter ended Dec. 31, 2024. This compares to the S&P 500 Index’s 0.4% gain over the same period. Over the past month, the stock has lost 12.1% against the S&P 500’s 2.8% rise, reflecting investor concerns surrounding the company’s performance and broader market positioning.
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Key Financial Performance Metrics
For the first quarter of fiscal 2025, Geospace reported revenues of $37.2 million, a 25.6% decline from $50 million in the year-ago quarter. Net income for the quarter also declined 33.9% to $8.4 million, or $0.65 per diluted share, from $12.7 million, or $0.94 per diluted share, in the same period last year.
Segmentally, the Smart Water division generated $7.3 million in revenues in first-quarter fiscal 2025, up 72.1% from $4.2 million in the prior-year quarter, driven by increased demand for Hydroconn cable and connector products. Revenues in the Energy Solutions segment declined 39.2% to $24.3 million due to lower utilization of the OBX rental fleet and the absence of a major $30 million Mariner node sale recorded in the prior year. The Intelligent Industrial segment reported $5.6 million in revenues, a 4.1% decrease from $5.8 million a year earlier, primarily due to reduced demand for imaging products.
Geospace Technologies Corporation Price, Consensus and EPS Surprise
Geospace Technologies Corporation price-consensus-eps-surprise-chart | Geospace Technologies Corporation Quote
Operational and Management Commentary
Geospace reported a gross profit of $20.1 million, representing a gross margin of 54.1%, down 9.4% from $22.2 million and 44.4% in the year-ago quarter. Operating expenses increased 31% year over year to $12.3 million from $9.4 million in the year-ago quarter, primarily due to higher personnel costs, including wages, benefits, severance, and recruiting fees. Additionally, research and development expenditures rose 35.9% to $4.9 million from $3.6 million in the year-ago quarter, reflecting the company's efforts to drive innovation across its segments.
The company’s balance sheet remains robust with $22.1 million in cash and equivalents and short-term investments and no outstanding debt. Total liquidity, including $12 million in borrowing availability under its credit facility, stood at $34 million. Geospace also owns significant unleveraged real estate assets. Management anticipates capital expenditures of $6 million for fiscal 2025, focused on property, plant, and equipment.