Benzinga | Mar 24, 2021 10:05AM EDT

Preview: LiqTech International's Earnings



LiqTech International (NASDAQ:LIQT) announces its next round of earnings this Thursday, March 25. Here is Benzinga's everything-that-matters guide for this Thursday's Q4 earnings announcement.

Net Income, Earnings, And Earnings Per Share

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street expects an EPS loss of $0.06 and sales around $4.58 million. In the same quarter last year, LiqTech International announced EPS of $0.04 on revenue of $6.20 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The analyst consensus estimate would represent a 50.0% decline in the company's EPS figure. Revenue would be down 26.13% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020EPS Estimate -0.07 -0.04 0.01 -0.02EPS Actual -0.17 -0.12 0.02 -0.04Revenue Estimate 4.27 M 4.67 M 9.94 M 5.90 MRevenue Actual 3.54 M 4.64 M 10.28 M 6.20 M

Stock Performance

Shares of LiqTech International were trading at $9.07 as of March 23. Over the last 52-week period, shares are up 132.22%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

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