Medicine and manufacturing technology provider Novanta (NASDAQ:NOVT) will be announcing earnings results tomorrow morning. Here’s what to look for.
Novanta beat analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $244.4 million, up 10.3% year on year. It was a softer quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.
Is Novanta a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Novanta’s revenue to grow 13.6% year on year to $240.3 million, a reversal from the 3.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.71 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Novanta has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.2% on average.
Looking at Novanta’s peers in the electronic components segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Vicor delivered year-on-year revenue growth of 3.8%, beating analysts’ expectations by 5.6%, and Advanced Energy reported revenues up 2.5%, topping estimates by 5.5%. Vicor traded up 23% following the results while Advanced Energy was also up 11%.
Read our full analysis of Vicor’s results here and Advanced Energy’s results here.
Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The US Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, and while some of the electronic components stocks have shown solid performance, the group has generally underpeformed, with share prices down 5.8% on average over the last month. Novanta is down 1.2% during the same time and is heading into earnings with an average analyst price target of $164.78 (compared to the current share price of $144).
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