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Market Overview

Preview: Northern Technologies's Earnings


Northern Technologies (NASDAQ:NTIC) announces its next round of earnings this Thursday, January 07. Here is Benzinga's everything-that-matters guide for this Thursday's Q1 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Analysts expect Northern Technologies earnings of $0.05 per share. Revenue will likely be around $12.00 million, according to the consensus estimate. Northern Technologies reported a per-share profit of $0.13 when it published results during the same quarter last year. Sales in that period totaled $14.63 million.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

The Wall Street consensus estimate for earnings would represent a 61.54% decrease for the company. Revenue would have fallen 17.98% from the same quarter last year. Here is how the company's reported EPS has compared to analyst estimates in the past:

Quarter Q4 2020 Q3 2020 Q2 2020 Q1 2020
EPS Estimate -0.05 -0.06 0.10 0.13
EPS Actual -0.19 -0.11 0.02 0.13
Revenue Estimate 10.50 M 10.30 M 13.00 M 15.00 M
Revenue Actual 10.03 M 9.74 M 13.23 M 14.63 M

Stock Performance

Shares of Northern Technologies were trading at $10.86 as of January 04. Over the last 52-week period, shares are down 22.47%. Given that these returns are generally negative, long-term shareholders are probably a little upset going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Northern Technologies is scheduled to hold the call at 09:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings