NOVT Earnings Prediction
The chart below shows how NOVT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NOVT sees a +4.60% change in stock price 10 days leading up to the earnings, and a +4.50% change 10 days following the report. On the earnings day itself, the stock moves by -3.39%. This data can give you a slight idea of what to expect for the next quarter's release.
NOVT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
244.41M
10.34%
3.62%
Gross Margin
41.99%
-3.58%
2.34%
Operating Margin
14.34%
-8.72%
19.70%
Net Margin
7.85%
-18.06%
34.65%
EPS
0.53
-10.17%
39.47%
No Data Available
NOVT Earnings Analysis
Novanta Inc. Common Stock Corporation (NOVT.O) Earnings Conference Call
Positive
Q3 Revenue Performance: 1. Strong Revenue Growth: Novanta reported $244 million in revenue for Q3 2024, achieving a 10% year-over-year growth, with a 13% increase in bookings driven by major OEM customers.
Adjusted EBITDA Growth: 2. Improved Adjusted EBITDA: The company achieved an adjusted EBITDA of $57 million, reflecting a 9% year-over-year growth and a 23% adjusted EBITDA margin.
Design Wins Surge: 3. Significant Design Wins: Design wins grew by over 20% year-over-year, indicating strong demand and execution in both industrial and medical end markets.
Medical Solutions Revenue Surge: 4. Robust Medical Solutions Segment: The medical solutions segment experienced a reported revenue growth of 24% year-over-year, with a book-to-bill ratio of 1.04 and bookings up 50% year-over-year.
Cash Flow Improvement: 5. Positive Cash Flow Performance: Year-to-date, Novanta has seen a 20% increase in operating cash flow, with expectations for strong cash flow growth to continue into the fourth quarter.
Negative
Precision Medicine Sales Decline: 1. Decline in Precision Medicine Sales: Sales in the Precision Medicine and Manufacturing segment fell by 15% year-over-year, significantly weaker than prior expectations due to a downturn in the precision medicine markets.
Declining Book-to-Bill Ratio: 2. Weak Book-to-Bill Ratio: The overall book-to-bill ratio for Novanta was 0.89, indicating that bookings were lower than shipments, with the Precision Medicine segment specifically suffering a book-to-bill of only 0.73.
Declining Gross Margins: 3. Lower Adjusted Gross Margins: Adjusted gross margins decreased to 46% in Q3 2024, down from 47% in the prior year, primarily due to unplanned declines in sales volume in the Precision Medicine and Manufacturing segment.
Revenue Outlook Adjustment: 4. Revenue Guidance Revision: The company revised its fourth quarter revenue outlook down by approximately $25 million, attributing this to customer-specific challenges and macroeconomic factors affecting capital equipment demand.
Rising Operating Expenses: 5. Increased Operating Expenses: Operating expenses are expected to rise sequentially in Q4 due to adjustments in compensation and project timing, contributing to a projected decline in adjusted earnings per share.
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NOVT Earning Call Sentiment
Novanta Inc. (NOVT) Q3 2024 Earnings Call Transcript
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00:00
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NOVT.O
-1.6%Positive
The earnings call presented mixed signals: strong product launches and growth in robotics and medical solutions were offset by challenges in precision medicine and life sciences. Margins declined slightly, and the book-to-bill ratio indicates potential demand issues. The Q&A revealed cautious optimism with some uncertainties. Despite a share repurchase program, weak guidance and macroeconomic concerns temper expectations. Given these factors, the stock price is likely to remain stable, hence a neutral sentiment.
