What Happened:
Shares of semiconductor quality control company Nova (NASDAQ: NVMI) jumped 5.3% in the morning session after the company reported first-quarter results that exceeded analysts' expectations for revenue, gross margin, and earnings per share. Revenue guidance for the next quarter came in below Consensus despite the record bookings recorded in the materials metrology division. In addition, EPS guidance was in line. Overall, it was a mixed quarter highlighting weaknesses similar to those observed by peers that have reported thus far, with management mentioning a "challenging industry environment." After the initial pop the shares cooled down to $92.01, up 0.98% from previous close.
What is the market telling us:
Nova 's shares are somewhat volatile and over the last year have had 12 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful but not something that would fundamentally change its perception of the business.
Nova is up 11% since the beginning of the year, but at $92.01 per share it is still trading 16.5% below its 52-week high of $110.22 from August 2022. Investors who bought $1,000 worth of Nova 's shares five years ago would now be looking at an investment worth $3,360.
Is now the time to buy Nova ? Access our full analysis of the earnings results here, it's free.