Dawson Geophysical (DWSN) Tops Q2 EPS by 9c, Revenues Slightly Beat

Dawson Geophysical (NASDAQ: DWSN) reported Q2 EPS of ($0.25), $0.09 better than the analyst estimate of ($0.34). Revenue for the quarter came in at $36.16 million versus the consensus estimate of $36 million.

Stephen C. Jumper, President and Chief Executive Officer, said, "Increased crew productivity and utilization continued to drive improved financial results as we generated a fourteen percent increase in revenue and over $7,000,000 improvement in EBITDA for the quarter ended June 30, 2018 compared to the quarter ended June 30, 2017, and a sixteen percent increase in revenue and nearly $16,000,000 improvement in EBITDA for the six months ended June 30, 2018 compared to the six months ended June 30, 2017. At the same time, we maintained our focus on activities designed to reduce costs and generate increased efficiencies. While our second quarter and trailing twelve months\' financial results represent a strong improvement from comparable prior periods, bid activity and crew utilization slowed significantly during the second quarter of 2018. As we enter into the second month of the third quarter, we are experiencing a gradual improvement in bid activity, primarily outside of the Permian and Delaware Basins."

Jumper continued, "As we experienced during the second half of 2017, the majority of our projects continue to be driven by multi-client data library companies, a model we do not actively participate in but we do act as a contractor for several of the largest providers. While our experience, highly qualified personnel and robust equipment inventory favorably position us for these projects, the competition between various multi-client providers continues to remain strong and affects project timing as seismic programs are put together with multiple participants, a situation which is beyond our control. During the second quarter, Permian and Delaware activity declined slightly as we are nearing completion of several projects in this highly concentrated area of activity. Project visibility remains constrained due to the uncertain sustainability of the recent rise in oil prices and overall activity, particularly in the Permian and Delaware basins."

For earnings history and earnings-related data on Dawson Geophysical (DWSN) click here.

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