By market close, shares had taken off 15.1% to $62.89. Trading volume of 1 million was more than five times its three-month daily average.
In its 8-K filing with the SEC, the developer of seismic data instruments said a previously announced $29.4 million order would be delayed. The order was from Seafloor Geophysical Solutions for 2,300 stations of its deepwater OBX seafloor node.
Seafloor advised Geospace a portion of its capital commitment had been withdrawn and that it was currently seeking new investors to fund the purchase order.
"While the possibility still exists that delivery of the system to SGS may occur in the company's fiscal third quarter, this event could result in a postponement of the delivery of this system beyond the fiscal third quarter. As a result, the company is not currently able to estimate when the system delivery might occur," Geospace said in the filing.
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TheStreet Ratings team rates GEOSPACE TECHNOLOGIES CORP as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GEOSPACE TECHNOLOGIES CORP (GEOS) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, good cash flow from operations and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself."