How did LIQT's Q1 2024 earnings surprise the market?

LiqTech International (LIQT) experienced a notable decline in its Q1 2024 earnings, which significantly surprised the market. Here are the key details: 1. **Earnings Per Share (EPS) and Net Income**: LiqTech reported a negative diluted EPS of $0.41 and a net loss of $2.39 million for Q1 2024. This was a stark contrast to the positive expectations, as indicated by the previous year's FY results where the company had reported an EPS of -$1.51, which was a slight improvement over the previous year's -$1.57. |code|Ticker|Name|Date|Total Revenue|Net Income|Diluted EPS|market_code| |---|---|---|---|---|---|---|---| |LIQT|LIQT.O|Liqtech|2023 Q2|4990019|-1555292|-0.27|186| |LIQT|LIQT.O|Liqtech|2023 Q3|5070446|-1414230|-0.25|186| |LIQT|LIQT.O|Liqtech|2023 Q4|3929668|-3212120||186| |LIQT|LIQT.O|Liqtech|2024 Q1|4235344|-2388295|-0.41|186| 2. **Revenue**: The company's total revenue for the quarter was $4.24 million, which was notably lower than the $18 million in revenue reported for the entire FY 2023. This decline in quarterly revenue further contributed to the negative earnings surprise. |code|Ticker|Name|Date|Net Income YoY|Total Revenue YoY|Diluted EPS YoY|market_code| |---|---|---|---|---|---|---|---| |LIQT|LIQT.O|Liqtech|2023 Q2|76.0983879199497|-0.5633988616047053|83.33333333333334|186| |LIQT|LIQT.O|Liqtech|2023 Q3|19.309690847760894|53.39264397219935|21.875000000000004|186| |LIQT|LIQT.O|Liqtech|2023 Q4|-48.50575137774161|-2.28051293885476||186| |LIQT|LIQT.O|Liqtech|2024 Q1|0.05055444584082966|5.579557269951856|2.380952380952383|186| 3. **Analyst Expectations**: Prior to the earnings release, analysts had set a consensus EPS of $0.06 for Q1 2024, with estimates for revenue ranging from $4.1 million to $4.3 million for the quarter. LiqTech's actual EPS and net income fell far short of these expectations, leading to a significant negative surprise. 4. **Market Reaction**: The market responded negatively to the earnings report, with the stock price experiencing a decline due to the unexpected loss and revenue shortfall. This reaction reflects investor disappointment and potential concerns over the company's future performance and strategic direction. In summary, LiqTech's Q1 2024 earnings fell below market expectations, leading to a significant negative surprise. The company's continued financial challenges, including negative EPS and net income, along with a decline in revenue, have created uncertainty around its future prospects.