Nova (NVMI) Q1 Earnings: What To Expect

Anthony Lee /
2023/05/10 6:52 am EDT

Semiconductor quality control company Nova (NASDAQ: NVMI) will be reporting earnings tomorrow before market open. Here's what to look for.

Last quarter Nova reported revenues of $151.2 million, up 24.5% year on year, beating analyst revenue expectations by 2.31%. It was a strong quarter for the company, with a significant improvement in inventory levels and very optimistic guidance for the next quarter.

Is Nova buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Nova 's revenue to decline 2.91% year on year to $130.1 million, a further deceleration on the 59.2% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.05 per share.

Nova  Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.19%.

Looking at Nova 's peers in the semiconductor manufacturing segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Teradyne's revenues decreased 18.2% year on year, beating analyst estimates by 2.4% and Lam Research reported revenue decline of 4.7% year on year, exceeding estimates by 0.58%. Teradyne traded up 8.46% on the results, Lam Research was down 1.38%. Read our full analysis of Teradyne's results here and Lam Research's results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the semiconductor manufacturing stocks have fared somewhat better, they have not been spared, with share price declining 7.36% over the last month. Nova is down 7.55% during the same time, and is heading into the earnings with analyst price target of $112.2, compared to share price of $89.92.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.