Ion disappointed investors earlier in 2013 but comfortably beat analysts' estimates in the fourth quarter with a profit of $19.8 million, or 12 cents a share, down from $27.2 million, or 17 cents a share, in the same period one year ago. Adjusted profit, excluding items, was 33 cents a share. Revenue also spiked 26% to $218.7 million. This well surpassed the expectations of a six-cent profit on revenue of $127 million from analysts' polled by Thomson Reuters.
The revenue growth stemmed from increased demand for Ion services. The company particularly grew in areas offshore of Africa, the Gulf of Mexico and India.
"We are pleased with the results we delivered in the fourth quarter. The first nine months of the year were challenging, as the first two quarters were impacted by cost overruns on a 3D marine program, and during the third quarter we experienced cautious spending by our E&P customers," said President and CEO Brian Hanson in the company's statement. "However, our customers saw value in our library as our Solutions segment had a record quarter for data library sales, up 131% over fourth quarter 2012...Also, a significant portion of our fourth quarter data library sales were to new customers, a further testament to the value of our data library portfolio."
TheStreet Ratings team rates ION GEOPHYSICAL CORP as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation: