RE:RE:Earnings Surprisesninja123 wrote: Kha, breaking down today's EPS miss .. what do you see as the main driver? top line or margin/expenses? what $ amount of revenue did the analysts expect from iron ore? i am struggling to find #s.
1) First of all let me say that I just noticed that the chart above (from Refinitiv - Thomson Reuters) is wrong. The analyst EPS estimates are supposed to be CAD$. So the comparison should be:
Q2-21 Actual EPS = ~C$0.17 (US$0.13) vs Mean EPS = C$0.29 for a negative surprise of -42%.
2) The negative surprise is due mainly to the tax amount of US$5.7M deducted from Net Income.
Q2-21 EPS as reported by Largo = US$0.13 was based on the “Net Income after tax” of US$8.5M (our total tax amounts = US$5.7M)
However if it was based on the “Net Income before tax” of US$14.2M, the Q2-21 EPS would = US$0.22 (= ~C$0.29) which pretty much in line with the analysts estimates of Low = C$0.25; High = C$0.348; Mean = C$0.291.
3) As a comparison we only reported US$1.5 as Deferred Income Tax Expenses in Q2-20. We did not have much tax expenses at all in 2020.
