ION Geophysical’s YTD returns
ION Geophysical’s (IO) YTD (year-to-date) returns were 116% until November 20, 2017. Since December 30, 2016, the Energy Select Sector SPDR ETF (XLE) has fallen 11%. The VanEck Vectors Oil Services ETF (OIH) witnessed YTD returns of -28%. The Dow Jones Industrial Average (DJIA-INDEX) has risen 19% YTD until November 20, 2017. The SPDR S&P 500 ETF (SPY) has produced 16% returns during the same period. So, ION Geophysical hugely outperformed the OFS industry ETF, the broader energy industry ETFs, and the broad equity market indexes.
ION Geophysical’s rise has been particularly spectacular in the past month. Since October 20, 2017, ION Geophysical has risen 52%.
Revenues and earnings in 9M17
From 4Q16 through 3Q17, ION Geophysical’s revenues rose 73%. Its earnings switched to a $5.0 million profit in 3Q17—a remarkable leap over the $6.3 million net loss it reported in 4Q16. Its free cash flows improved in 3Q17—compared to 4Q16. During the same period, its net debt (total debt less capital expenditures) rose 8%, while its indebtedness (net debt-to-EBITDA) improved to 2.4x in 3Q17—compared to 3.9x in 4Q16. It was primarily due to a significant rise in the EBITDA (earnings before interest, tax, depreciation, and amortization).
Next, we’ll compare the YTD returns from Newpark Resources (NR) with market indicators. We’ll analyze its fundamental metrics.