What do NTIC's past surprises suggest for Q2 2025?

Northern Technologies International Corp (NTIC) has shown a pattern of consistent, if not spectacular, financial performance with some notable achievements. The company's ability to beat earnings expectations in recent quarters suggests a positive outlook for Q2 2025, but the margin for surprise appears limited. 1. **Consistent Performance**: NTIC has demonstrated a stable performance with consistent revenue growth and margin improvements. This track record suggests that the company is effectively managing its operations and capitalizing on market opportunities. 2. **Earnings Beats**: NTIC has beaten earnings expectations in the past, as evidenced by the EPS of $0.19 beating estimates in the latest report period. This indicates that the company's actual performance is often better than what analysts anticipate. |code|Ticker|Name|Date|EPS Surprise|Diluted EPS|market_code| |---|---|---|---|---|---|---| |NTIC|NTIC.O|Northern Technologies International|2024 Q2|0.01|0.17|185| |NTIC|NTIC.O|Northern Technologies International|2024 Q3|-0.13|0.1|185| |NTIC|NTIC.O|Northern Technologies International|2024 Q4|0.01||185| |NTIC|NTIC.O|Northern Technologies International|2025 Q1|-0.1|0.06|185| 3. **Revenue Growth**: The company's revenue has shown a steady increase, with a recent report period reporting a 6.5% year-over-year growth in annual revenue. This trend is likely to continue, supported by the growth in key product segments. 4. **Segmental Performance**: NTIC's segments, ZERUST and Natur-Tec, have shown varying degrees of success. While ZERUST oil and gas net sales have seen a significant drop due to timing of orders, the overall performance of the segments has been positive, with increased sales of Natur-Tec products. 5. **Market Position**: NTIC's focus on environmentally friendly solutions and its leading position in the corrosion prevention market are likely to position it well for continued growth, especially as demand for sustainable products increases. In conclusion, while NTIC's past performance suggests a positive outlook for Q2 2025, investors should not expect a major earnings surprise. The company's consistent growth and recent achievements indicate a strong likelihood of meeting or slightly exceeding earnings expectations. However, the lack of recent earnings beats in the record suggests that the surprise, if any, is likely to be modest.