ION Geophysical Corporation (NYSE:IO) defied analyst predictions to release its quarterly results, which were ahead of market expectations. The results were impressive, with revenues of US$56m exceeding analyst forecasts by 20%, and statutory losses of US$0.16 were likewise much smaller than the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

View our latest analysis for ION Geophysical

Following the recent earnings report, the consensus from three analysts covering ION Geophysical is for revenues of US$149.7m in 2020, implying a concerning 23% decline in sales compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 37% to US$1.29. Yet prior to the latest earnings, the analysts had been forecasting revenues of US$149.4m and losses of US$2.13 per share in 2020. While the revenue estimates were largely unchanged, sentiment seems to have improved, with the analysts upgrading revenues and making a losses per share in particular.

Even with the lower forecast losses, the analysts lowered their valuations, with the average price target falling 29% to US$3.75. It looks likethe analysts have become less optimistic about the overall business. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic ION Geophysical analyst has a price target of US$4.00 per share, while the most pessimistic values it at US$3.50. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. One more thing stood out to us about these estimates, and it's the idea that ION Geophysical'sdecline is expected to accelerate, with revenues forecast to fall 23% next year, topping off a historical decline of 11% a year over the past five years. Compare this against analyst estimates for companies in the wider industry, which suggest that revenues (in aggregate) are expected to grow 0.02% next year. So while a broad number of companies are forecast to decline, unfortunately ION Geophysical is expected to see its sales affected worse than other companies in the industry.