Why Materials Stock Northern Technologies Shares Are Diving Today

Northern Technologies International Corporation NTIC shares are trading lower after the company reported the third quarter of fiscal 2024 results.

Net sales fell 1.4% Y/Y to $20.7 million, missing the estimate of $23.0 million. ZERUST industrial net sales fell 4.4% Y/Y to $13.5 million, and ZERUST oil and gas net sales fell 31.9% Y/Y to $1.36 million.

Natur-Tec product net sales rose 20.1% Y/Y to $5.85 million, and NTIC China net sales rose 6.7% Y/Y to $3.54 million.

Gross profit margin expanded 210 basis points Y/Y to 38.2% in the quarter, led by strategies to mitigate supply chain disruptions and raw material challenges, including insourcing various finished goods production.

Adjusted EPS of $0.11 came below the consensus of $0.24.

As of May-end, the company had investments in joint ventures of $24.2 million, including cash of $13.4 million.

G. Patrick Lynch, President and CEO of NTIC said, “While the timing of approximately $600,000 of shipments impacted third quarter ZERUST® oil and gas sales, demand for our oil and gas solutions is expanding. As a result, we expect to experience a significant rebound in oil and gas sales in the fourth quarter of fiscal 2024.”

“In addition, we continue to make strategic investments in our operations aimed at supporting additional growth opportunities across our global markets – most notably in North America, Brazil, and India. Overall, fiscal 2024 is shaping up to be a strong year of growth, profitability and strategic investments for NTIC.” 

Price Action: NTIC shares are down 7.7% at $14.50 at the last check Thursday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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