Semiconductor quality control company Nova (NASDAQ: NVMI) will be reporting results this Thursday before market open. Here’s what investors should know.
Nova beat analysts’ revenue expectations last quarter, reporting revenues of $235.3 million, up 10.3% year on year. It was an exceptional quarter for the company, with a solid beat of analysts’ operating income estimates and a significant improvement in its inventory levels.
Is Nova 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 Nova’s revenue to grow 14.1% year on year, slowing from the 40.2% 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 will stay the course heading into earnings. Nova has a history of exceeding Wall Street’s expectations.
Looking at Nova’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. FormFactor delivered year-on-year revenue growth of 31.9%, beating analysts’ expectations by 7.6%, and Teradyne reported revenues up 104%, topping estimates by 9.4%. FormFactor traded up 26.3% following the results while Teradyne’s stock price was unchanged.
Read our full analysis of FormFactor’s results here and Teradyne’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the semiconductor manufacturing stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 6.3% on average over the last month. Nova is down 13.1% during the same time and is heading into earnings with an average analyst price target of $603.38 (compared to the current share price of $405.73).
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