Last summer and fall I noted that Oyo Geospace (OYOG) was getting their balance sheet in order and that a turnaround may be on its way for the company as oil prices have risen. I didn’t expect their earnings to show any improvement until their fiscal fourth quarter. Their fourth quarter, however, was disappointing in regard to their earnings. (more…)
Last week at my CAPS blog, I noted that Oyo Geospace is showing some early signs of recovery:
Earlier this week, OYO Geospace (NASD: OYOG) reported that they have recently received several orders for seismic equipment totaling more than $18 million. These orders span a variety of seismic products including geophone and hydrophone sensors, cables, GSR units, and borehole products. The company also recently announced an order for one of the GSR systems, their new wireless data acquisition system. The company notes that their backlog has increased substantially in recent weeks, with the majority of the orders to be delivered during the fourth quarter of 2009.
A recent article at Automation.com notes that Oyo Geospace (NASD: OYOG) recently installed dcLINK for inventory management.
We’re able to keep everything real-time by using dcLINK, said Todd DeLoach, Warehouse Manager, OYO Geospace. Now we know immediately that needed items are available and that they have been committed to the work order or the sales order. That’s real-time for us, and it’s a great, great benefit.
Oyo Geospace (NASD: OYOG) announced first quarter earnings last week, and the results were not pretty. Net income fell to $1.3 million or $0.22 per share as compared to net income of $3.3 million or $0.54 per share one year ago. Oyo had earned as much as $4.3 million in the third quarter of 2008, but it seems that as oil prices have fallen there has been less demand for Oyo’s products.
The first quarter results from Oyo Geospace (NASD: OYOG) were pretty disappointing. Quarter over quarter growth was negative after the company reported $0.60 per share in earnings in their fourth quarter (excluding one-time items), earnings fell to $0.54 per share in their first quarter of 2008. There were no RCS contract announcements, and the move to their new 170,000 square foot facility is still on-going. (more…)
I’ve been watching Oyo Geospace (NASD: OYOG) over the past couple of days decline to the low 60s. As noted in my previous post about Oyo, a price of $69 per share represents 12% earnings growth over the next 10 years. I think they can demonstrate a bit more growth than that given the demand for seismic sensors.
If Oyo can land a couple more RCS contracts, today’s shares will look like a real bargain. The thought of a contract had shares above $100 just a couple of months ago. I don’t think a contract is out of the question just yet. Their next quarter will likely see them going full steam at their new production facility with the capacity to grow earnings at a good rate and meet demands of future RCS clients.
If Oyo stays in the low 60s over the next several days, I will purchase another 3% for the Two Roads Diverged Portfolio, bringing the total holdings to 12.5% of the portfolio.
I first purchased OYO Geospace for Two Roads Diverged in December of 2006. After further research, I decided that I wanted OYO to be one of my top holdings. This decision has rewarded me well. In this analysis, I will summarize Oyo’s different lines of business, examine their earnings history, and try to determine a range of values for their shares. (more…)
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