The oil services company reported 2Q earnings results today, which caused its investors' confidence to reach new heights
SAExploration Holdings, Inc. (NASDAQ:SAEX) stock skyrocketed over 425% during the midday trading hours today, after the company posted second quarter of fiscal 2016 (2QFY16) earnings results. Its earnings per share (EPS) of $1.97—adjusted on a reverse-split—were lower than $18.96 in last year’s comparable period. The $57-million revenue was also behind last year’s $66.9 million.
Sales from projects jumped 1.6% year-over-year (YoY) to $49.2 million, while gross margin grew from 31.4% in the prior year to 36%. The company added that it had successfully completed its balance sheet’s restructuring and recapitalization.
With regard to this, CEO Jeff Hastings explained that the streamlining came about primarily to create a stronger platform to compensate its highly-valued customers. The executive added that SAExploration successfully secured additional funds to recapitalize itself, and meet the needs till certain Alaska tax credits, which are under process, are monetized. He said: “These transactions provide SAE with enhanced liquidity, financial flexibility and a realigned balance sheet, which will make us even more competitive in the current environment and position us for long-term growth and continued success.”
The oil services company mentioned that selling, general and administrative (SG&A) expenses totaled $7.2 million during the period, as opposed to $8.7 million in the comparable quarter. The lower SG&A cost was due to the headcount reductions and cost controls, which were implemented last year, along with some previously-announced plans that were put into action in 2016.
Since January this year, SAEX stock has lost more than 80% of its value. As of 1 PM EDT, it is up 421.74% at $48.
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