Why ION Geophysical's Shares Jumped
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) soared as much as 23% today after the company released its first-quarter earnings report.
So what: Revenue grew 23% to $90.6 million and net income was $8.2 million, or $0.05 per share. Both results beat expectations, driven by a 53% increase in system segment sales.
Now what: Management is also upbeat about the outlook for 2012 and is investing heavily in the business. Despite the growth, shares are trading at just over 10 times forward earnings estimates. I think shares have further to run with the company reporting strong revenue growth and the industry as a whole expanding explorations for energy.
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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.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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