Medicine and manufacturing technology provider Novanta (NASDAQ: NOVT) will be reporting earnings this Tuesday before the bell. Here’s what to expect.
Novanta beat analysts’ revenue expectations last quarter, reporting revenues of $247.8 million, up 1.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EBITDA estimates.
Is Novanta a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Novanta’s revenue to grow 9.5% year on year, slowing from the 12.5% increase it recorded in the same quarter last year.
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 rarely misses Wall Street’s revenue estimates.
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’s revenues decreased 35.3% year on year, missing analysts’ expectations by 42.2%, and Bel Fuse reported revenues up 17.4%, topping estimates by 1.5%. Vicor traded up 11.2% following the results while Bel Fuse was down 4.4%.
Read our full analysis of Vicor’s results here and Bel Fuse’s results here.
There has been positive sentiment among investors in the electronic components segment, with share prices up 7.1% on average over the last month. Novanta is up 6.2% during the same time and is heading into earnings with an average analyst price target of $154 (compared to the current share price of $143.89).
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