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Does Dawson Geophysical's (NASDAQ:DWSN) Share Price Gain of 87% Match Its Business Performance?

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Simply Wall St
·2 min read
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It might be of some concern to shareholders to see the Dawson Geophysical Company (NASDAQ:DWSN) share price down 14% in the last month. But that doesn't change the reality that over twelve months the stock has done really well. To wit, it had solidly beat the market, up 87%.

Check out our latest analysis for Dawson Geophysical

Given that Dawson Geophysical didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. Shareholders of unprofitable companies usually expect strong revenue growth. Some companies are willing to postpone profitability to grow revenue faster, but in that case one does expect good top-line growth.

Dawson Geophysical actually shrunk its revenue over the last year, with a reduction of 41%. Despite the lack of revenue growth, the stock has returned a solid 87% the last twelve months. We can correlate the share price rise with revenue or profit growth, but it seems the market had previously expected weaker results, and sentiment around the stock is improving.

The image below shows how earnings and revenue have tracked over time (if you click on the image you can see greater detail).

earnings-and-revenue-growth
earnings-and-revenue-growth

Take a more thorough look at Dawson Geophysical's financial health with this free report on its balance sheet.

A Different Perspective

We're pleased to report that Dawson Geophysical shareholders have received a total shareholder return of 87% over one year. Notably the five-year annualised TSR loss of 8% per year compares very unfavourably with the recent share price performance. This makes us a little wary, but the business might have turned around its fortunes. It's always interesting to track share price performance over the longer term. But to understand Dawson Geophysical better, we need to consider many other factors. To that end, you should be aware of the 2 warning signs we've spotted with Dawson Geophysical .

If you would prefer to check out another company -- one with potentially superior financials -- then do not miss this free list of companies that have proven they can grow earnings.

Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on US exchanges.

This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.