Medicine and manufacturing technology provider Novanta (NASDAQ: NOVT) will be announcing earnings results tomorrow before the bell. Here’s what to expect.
Novanta missed analysts’ revenue expectations by 0.9% last quarter, reporting revenues of $238.1 million, up 12.5% 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 1% year on year to $233.3 million, slowing from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.67 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 missed Wall Street’s revenue estimates twice 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. Bel Fuse delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 1.6%, and Advanced Energy reported revenues up 23.6%, topping estimates by 3.7%. Bel Fuse traded up 3.4% following the results while Advanced Energy was also up 11%.
Read our full analysis of Bel Fuse’s results here and Advanced Energy’s results here.
There has been positive sentiment among investors in the electronic components segment, with share prices up 13% on average over the last month. Novanta is up 16.2% during the same time and is heading into earnings with an average analyst price target of $162.65 (compared to the current share price of $121.98).
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