Estimates have come down substantially after ugly second
quarter results, sending Mitcham to a Zacks Rank # 5 (Strong
Sell) earlier this month.
MITCHAM INDS (MIND): Free Stock Analysis
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About the Company
Mitcham Industries (
specializes in leasing and sale of advanced seismic equipment
that help oil companies explore for pockets of oil.
The company operates in two segments: equipment leasing and
equipment manufacturing. Founded in 1987, the company now has
nine locations around the world, providing support and service to
Disappointing Second Quarter Results
MIND reported its fiscal 2014 second quarter ended July 31,
2013 financial results on September 4, 2013.
Total revenues for the quarter were $20.9 million down
from $23.1 million in the year-ago quarter. The
Company reported a net loss of $693,000,
or $(0.05) per share, compared to net income
of $1.1 million, or $0.08 per diluted share in the
comparable quarter of fiscal 2013.
Apart from seasonal softness in leasing, continued weakness in
U.S. land activity; project delays due to permitting
difficulties, labor unrest and security issues in Colombia;
and a recent decline in marine leasing activity were the major
contributors to lower leasing revenues.
The management said that in the next quarter, it would be
difficult for them to match leasing revenues a year ago, given
the softness and delays in Latin America.
Due to disappointing results and uninspiring guidance, quarterly
and annual estimates have been revised sharply downwards in the
past few weeks. Zacks consensus estimates for the current quarter
and year are now $ (0.01) and $0.69 respectively down from $0.27
and $1.37 per share, 60 days ago.
The Bottom Line
While the company has growth potential in much longer-term given
positive outlook for the oil & gas exploration industry,
near-term headwinds will keep the stock under pressure.
MIND is currently Zacks Rank # 5 (Strong Sell) stock and it has a
recommendation of "Underperform". Further, Zacks Industry
Rank of 205 out of 265 also indicates some weakness in the short-
to mid- term. As such investors would like to avoid this stock
for the time being.
Investors seeking exposure to the industry could look
, a Zacks Rank #1 stock with an outperform recommendation.
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