Benzinga | Apr 7, 2021 10:02AM EDT

A Preview Of Northern Technologies's Earnings

On Thursday, April 08, Northern Technologies (NASDAQ:NTIC) will release its latest earnings report. Decipher the announcement with Benzinga's help.

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

Based on management's projections, Northern Technologies analysts model for earnings of $0.08 per share on sales of $12.00 million. In the same quarter last year, Northern Technologies announced EPS of $0.02 on revenue of $13.23 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

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.

If the company were to post earnings in line with the consensus estimate when it reports Thursday, EPS would be up 300.0%. Revenue would be down 9.32% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2021 Q4 2020 Q3 2020 Q2 2020EPS Estimate 0.05 -0.05 -0.06 0.10EPS Actual 0.13 -0.19 -0.11 0.02Revenue Estimate 12.00 M 10.50 M 10.30 M 13.00 MRevenue Actual 12.78 M 10.03 M 9.74 M 13.23 M

Stock Performance

Over the last 52-week period, shares are up 107.74%. Given that these returns are generally positive, long-term shareholders can be content 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.