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Northern Technologies (NTIC) Misses Q1 Earnings Estimates
NTICNorthern Technologies International (NTIC) ZACKS·2025-01-09 02:10

Earnings Performance - Northern Technologies reported quarterly earnings of 007pershare,missingtheZacksConsensusEstimateof0 07 per share, missing the Zacks Consensus Estimate of 0 12 per share and representing a -41 67% earnings surprise [1] - The company's earnings were 010pershareayearago,indicatingadeclineinearningsperformance[1]−Inthepreviousquarter,thecompanypostedearningsof0 10 per share a year ago, indicating a decline in earnings performance [1] - In the previous quarter, the company posted earnings of 0 20 per share, surpassing the expected 019persharewitha5260 19 per share with a 5 26% surprise [1] Revenue Performance - Northern Technologies reported revenues of 21 34 million for the quarter ended November 2024, surpassing the Zacks Consensus Estimate by 1 61% [2] - This compares to year-ago revenues of 2018million,showingayear−over−yearincrease[2]−Thecompanyhastoppedconsensusrevenueestimatestwotimesoverthelastfourquarters[2]StockPerformanceandMarketComparison−NorthernTechnologiesshareshavelostabout420 18 million, showing a year-over-year increase [2] - The company has topped consensus revenue estimates two times over the last four quarters [2] Stock Performance and Market Comparison - Northern Technologies shares have lost about 4% since the beginning of the year, while the S&P 500 has gained 0 5% [3] - The company's stock is expected to underperform the market in the near future, with a Zacks Rank 4 (Sell) [6] Earnings Outlook and Estimate Revisions - The current consensus EPS estimate is 0 16 on 223millioninrevenuesforthecomingquarterand22 3 million in revenues for the coming quarter and 0 70 on 926millioninrevenuesforthecurrentfiscalyear[7]−TheestimaterevisionstrendforNorthernTechnologiesisunfavorableaheadoftheearningsrelease[6]−Empiricalresearchshowsastrongcorrelationbetweennear−termstockmovementsandtrendsinearningsestimaterevisions[5]IndustryContext−NorthernTechnologiesbelongstotheZacksChemical−Diversifiedindustry,whichiscurrentlyinthebottom992 6 million in revenues for the current fiscal year [7] - The estimate revisions trend for Northern Technologies is unfavorable ahead of the earnings release [6] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions [5] Industry Context - Northern Technologies belongs to the Zacks Chemical - Diversified industry, which is currently in the bottom 9% of the 250 plus Zacks industries [8] - The top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1 [8] - Methanex (MEOH), another company in the same industry, is expected to post quarterly earnings of 0 84 per share, representing a year-over-year change of +61 5% [9] - Methanex's revenues are expected to be $1 02 billion, up 11 1% from the year-ago quarter [9]