ION Geophysical Corporation

ION Geophysical Corporation (NYSE: IO) is a technology company that enables Oil and gas exploration and production (E&P) businesses to collect photographs of the Earth's subsurface. E&P Technology & Services and E&P Operations Optimization are the two segments through which the company provides services and products.

Key Highlights:

• The company reported YoY growth of 173.44% in net revenue to USD 44.39 million in Q3FY21 (ended September 30, 2021) compared to USD 16.23 million in Q3FY20.
• IO’s net loss decreased to USD 453 thousand in Q3FY21 vs. USD 16.61 million in Q3FY20.
• As of September 30, 2021, the company had cash and cash equivalents of USD 24.14 million and total debt of USD 133.83 million.
• Its net margin was -1.0% in Q3FY21, whereas the industry median stood at -1.3%.
• Stock is currently trading between its crucial short-term (50-day) and long-term (200-day) SMA support levels.
• Stock is leaning towards the lower band of the 52-week range of USD 0.38 to USD 2.75.

Stock Recommendation

Considering the company’s growth in topline, no visibility into profitability, technical indicators, and associated risks. We recommend a "Avoid" rating on the stock at the current price of USD 0.780050, down 6.14%, as of April 08, 2022, at 11:50 AM PDT.

 Technical Price Chart (as on April 08, 2022, at 11:50 AM PDT). Source: REFINITIV, Analysis by Kalkine Group

*The reference data in this report has been partly sourced from REFINITIV.