Semiconductor quality control company Nova (NASDAQ:NVMI) will be reporting earnings tomorrow before the bell. Here's what to expect.
Nova beat analysts' revenue expectations by 3.7% last quarter, reporting revenues of $141.8 million, up 7.3% year on year. It was a strong quarter for the company, with an impressive beat of analysts' EPS estimates and optimistic revenue guidance for the next quarter.
Is Nova a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Nova's revenue to grow 20.7% year on year to $148.1 million, a reversal from the 13.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.36 per share.
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. Nova has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 2.9% on average.
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 26.7%, beating analysts' expectations by 1.3%, and Lam Research reported revenues up 20.7%, topping estimates by 1%. FormFactor traded down 11.8% following the results while Lam Research was also down 10%.
Read our full analysis of FormFactor's results here and Lam Research's results here.
Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and semiconductor manufacturing stocks have not been spared, with share prices down 19.8% on average over the last month. Nova is down 25.4% during the same time and is heading into earnings with an average analyst price target of $242.6 (compared to the current share price of $182.49).
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