- The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Energy Equipment & Services industry. The net income has significantly decreased by 152.7% when compared to the same quarter one year ago, falling from $76.70 million to -$40.40 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Energy Equipment & Services industry and the overall market, CGG's return on equity significantly trails that of both the industry average and the S&P 500.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 57.64%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 154.76% compared to the year-earlier quarter. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- CGG has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CGG swung to a loss, reporting -$3.96 versus $0.47 in the prior year. This year, the market expects an improvement in earnings ($0.42 versus -$3.96).
- CGG, with its decline in revenue, underperformed when compared the industry average of 21.4%. Since the same quarter one year prior, revenues slightly dropped by 7.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link. Two out of the three major indices traded up today One out of the three major indices traded up today with the Dow Jones Industrial Average ( ^DJI) trading up 17 points (0.1%) at 16,447 as of Wednesday, Aug. 6, 2014, 3:55 PM ET. The NYSE advances/declines ratio sits at 1,883 issues advancing vs. 1,122 declining with 133 unchanged. The Energy industry as a whole closed the day up 0.1% versus the S&P 500, which was unchanged. Top gainers within the Energy industry included Houston American Energy ( HUSA), up 4.9%, Escalera Resources ( ESCR), up 3.7%, Double Eagle Petroleum Company ( DBLE), up 3.7%, New Concept Energy ( GBR), up 2.4% and CGG ( CGG), up 1.7%. TheStreet Ratings Group would like to highlight 3 stocks pushing the industry higher today: CGG ( CGG) is one of the companies that pushed the Energy industry higher today. CGG was up $0.16 (1.7%) to $9.57 on light volume. Throughout the day, 11,318 shares of CGG exchanged hands as compared to its average daily volume of 29,400 shares. The stock ranged in a price between $9.48-$9.63 after having opened the day at $9.50 as compared to the previous trading day's close of $9.41. Compagnie Generale de Geophysique Veritas, SA provides geophysical equipment and geophysical services for the oil and gas exploration and production industry in North America, Central and South Americas, Europe, Africa, the Middle East, and the Asia Pacific. CGG has a market cap of $1.8 billion and is part of the basic materials sector. Shares are down 42.5% year-to-date as of the close of trading on Tuesday. Currently there are no analysts who rate CGG a buy, 1 analyst rates it a sell, and 1 rates it a hold. STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. TheStreet Ratings rates CGG as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share. Highlights from TheStreet Ratings analysis on CGG go as follows: