Semiconductor quality control company Nova (NASDAQ: NVMI) will be reporting results tomorrow before the bell. Here’s what you need to know.
Nova beat analysts’ revenue expectations by 2.3% last quarter, reporting revenues of $194.8 million, up 45.1% year on year. It was a very strong quarter for the company, with a significant improvement in its inventory levels and a solid beat of analysts’ adjusted operating income estimates.
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 48.2% year on year to $210.2 million, improving from the 7.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.09 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 3% on average.
Looking at Nova’s peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kulicke and Soffa’s revenues decreased 5.9% year on year, missing analysts’ expectations by 1.9%, and IPG Photonics reported a revenue decline of 9.6%, topping estimates by 1.2%.
Read our full analysis of Kulicke and Soffa’s results here and IPG Photonics’s results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 22.4% on average over the last month. Nova is up 17% during the same time and is heading into earnings with an average analyst price target of $279.59 (compared to the current share price of $195).
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