Northern Technologies Clocks 9.1% Sales growth In Q2; Predicts NTIC China Sales To Improve In Q3

Northern Technologies International Corp NTIC reported second-quarter FY23 sales of $18.27 million, a 9.1% growth year-on-year, missing the estimate of $20.40 million.
ZERUST sales increased 10.1% Y/Y to $14.46 million. The company recorded a gross profit of $6.40 million, up 28.5% Y/Y, with a margin of 35.0%.
Operating expenses for the quarter were 41.0% of net sales, an increase from 40.1% a year ago. The operating margin for the period was 7.0%.
Adjusted EPS stood at $0.102, compared to $0.041 reported a year earlier.
Cash and equivalents totaled $5.45 million as of Feb 28, 2023.
"We expect NTIC China sales will improve in the third quarter and beyond as the Chinese economy finally has the opportunity to start rebounding from its exceptionally long, self-imposed pandemic freeze. In addition, Natur-Tec sales are expected to benefit in the third quarter from new customer relationships and incremental orders. Consequently, we believe we are well positioned for a strong finish to fiscal 2023," stated G. Patrick Lynch, President and CEO.
Price Action: NTIC shares traded higher by 5.17% at $12.40 on the last check Thursday.