Semiconductor quality control company Nova (NASDAQ:NVMI) will be announcing earnings results this Thursday morning. Here’s what to expect.
Nova beat analysts’ revenue expectations by 1.5% last quarter, reporting revenues of $224.6 million, up 25.5% year on year. It was a satisfactory quarter for the company, with a meaningful improvement in its inventory levels but adjusted operating income in line with analysts’ estimates.
Is Nova a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, analysts are expecting Nova’s revenue to grow 13.5% year on year to $221.1 million, slowing from the 45.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.12 per share.
Analysts covering the company have generally 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 2.8% on average.
Looking at Nova’s peers in the semiconductor manufacturing segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 43.9%, beating analysts’ expectations by 11%, and Kulicke and Soffa reported revenues up 20.2%, topping estimates by 5%. Teradyne traded up 13.4% following the results while Kulicke and Soffa was also up 19.3%.
Read our full analysis of Teradyne’s results here and Kulicke and Soffa’s results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 10.2% on average over the last month. Nova is up 13.5% during the same time and is heading into earnings with an average analyst price target of $400.71 (compared to the current share price of $458.94).
Today’s young investors won’t have read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.