Geospace Technologies Corporation
) is a manufacturer of scientific and technical instruments for the
oil & gas industry that has been seeing increased demand for
its products. This was evident in the company's fiscal
third-quarter report, which included year-over-year improvements in
EPS and sales. This Zacks #1 Rank (Strong Buy) is also gearing up
for a 2-for-1 stock split in the next few days.
On August 2, Geospace Technologies reported fiscal third quarter
earnings per share of $1.67, compared to $1.44 last year. However,
it missed the Zacks Consensus Estimate of $1.95. Net sales
increased 19% based on strong demand for the company's products.
Besides the financial results, the company is also preparing for a
2-for-1 stock split in the form of a 100% stock dividend payment.
The split will occur on October 18. The stockholders of record as
on October 15 will be getting one additional stock for each stock
Earnings Estimates Moving Higher
Over the last month, two of 6 estimates moved higher for fiscal
2013 (ending September 2013), boosting the Zacks Consensus Estimate
by 16% to $8.98.
Valuation & Technicals
Geospace Technologies Corporation is currently trading at a forward
P/E multiple of 15.3x, a 10.0% premium over its peer group average
of 13.9x. On a P/S basis, shares trade at 4.7x, versus the peer
group average of 1.4x. The company offers a ROE of 17.9% versus a
peer group average of 7.0%.
As the chart below shows, share prices have been rising since the
beginning of calendar 2009. The future outlook also seems bright as
the Zacks Consensus Estimates are trending higher for the years to
Headquartered in Houston, Texas, Geospace Technologies Corporation
was incorporated in 1980. The company primarily deals with the
manufacturing and selling of instruments and equipment used by the
oil and gas industry. Currently, the company has a market
capitalization of approximately $876 million.
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