Medicine and manufacturing technology provider Novanta (NASDAQ: NOVT) will be reporting results this Tuesday before market open. Here’s what to look for.
Novanta beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $241 million, up 2.2% year on year. It was a slower quarter for the company, with EBITDA guidance for next quarter missing analysts’ expectations significantly and revenue guidance for next quarter missing analysts’ expectations.
Is Novanta a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Novanta’s revenue to be flat year on year at $245.9 million, slowing from the 10.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.82 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 a history of exceeding Wall Street’s expectations, beating revenue estimates every single time since going public by 0.7% on average.
Looking at Novanta’s peers in the electronic components segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Vicor delivered year-on-year revenue growth of 18.5%, beating analysts’ expectations by 15.7%, and Bel Fuse reported revenues up 44.8%, topping estimates by 3.7%. Vicor traded up 30.1% following the results while Bel Fuse was down 2.9%.
Read our full analysis of Vicor’s results here and Bel Fuse’s results here.
Investors in the electronic components segment have had steady hands going into earnings, with share prices flat over the last month. Novanta is up 21.8% during the same time and is heading into earnings with an average analyst price target of $141.50 (compared to the current share price of $127.01).
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