ION Geophysical Shares Plunged: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of ION Geophysical (NYS: IO) fell as much as 16% in early trading today after the company released earnings.
So what: Revenue fell to $115.7 million from $121.6 a year ago, and well below analysts' estimates of $123.8 million. Earnings per share of $0.06 were just a penny lower than expected.
Now what: Management pointed to a slow recovery of the data-processing business as a major driver of the downfall this quarter. I just don't see anything to make me want to jump into shares of ION today, especially after seeing Transocean (NYS: RIG) falter in the third quarter. I'm going to let the industry shake out a bit and hope for a rise in oil prices before buying shares.
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At the time this article was published Fool contributor Travis Hoium does not have a position in any company mentioned. You can follow Travis on Twitter at @FlushDrawFool, check out his personal stock holdings or follow his CAPS picks at TMFFlushDraw.The Motley Fool owns shares of Transocean. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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