Medicine and manufacturing technology provider Novanta (NASDAQ: NOVT) will be announcing earnings results this Monday after market close. Here’s what to expect.
Novanta missed analysts’ revenue expectations last quarter, reporting revenues of $258.3 million, up 8.5% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and 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 8.6% year on year, improving from the 1.1% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Novanta has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Novanta’s peers in the electronic components segment, some have already reported their Q1 results, giving us a hint as to what we can expect. nLIGHT delivered year-on-year revenue growth of 55.2%, beating analysts’ expectations by 11.2%, and Littelfuse reported revenues up 18.5%, topping estimates by 3.4%. nLIGHT traded up 5.6% following the results while Littelfuse was also up 4.8%.
Read our full analysis of nLIGHT’s results here and Littelfuse’s results here.
There has been positive sentiment among investors in the electronic components segment, with share prices up 5% on average over the last month. Novanta is up 12% during the same time and is heading into earnings with an average analyst price target of $157 (compared to the current share price of $140.24).
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