Update (4:10 p.m.): Updated with one-year low and Tuesday market close information.
The company said in its preliminary fourth-quarter and full fiscal year results that financial reports for each of the fiscal years ended Dec. 31, 2012, 2011, 2010, and 2009 and the first, second and third quarters of 2013 "should no longer be relied upon because of accounting errors resulting from material weaknesses in the company's internal controls."
Global Geophysical did state, though, that it expects to report fourth-quarter revenue of approximately $81 million, which would beat the Capital IQ consensus estimate of $75.6 million. The company also expects a pre-tax loss from operations of $69.4 million.
The stock closed down 59.32% to less than 48 cents, down from its previous close of $1.17, on Tuesday. It amassed a volume of 9,270,061, more than 41 times its average of 224,062. It hit a high of slightly less than 69 cents for the day and holds a one-year high of $4.96.
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TheStreet Ratings team rates GLOBAL GEOPHYSICAL SVCS INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate GLOBAL GEOPHYSICAL SVCS INC (GGS) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and weak operating cash flow."