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Market Overview

A Preview Of Novanta's Earnings


Novanta (NASDAQ:NOVT) releases its next round of earnings this Monday, March 01. Here is Benzinga's essential guide to Novanta's Q4 earnings report.

Net Income, Earnings, And Earnings Per Share

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Wall Street expects EPS of $0.44 and sales around $147.05 million. In the same quarter last year, Novanta reported EPS of $0.55 on revenue of $159.70 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate, earnings would be down 20.0%. Sales would be down 7.92% from the year-ago period. In comparison to analyst estimates in the past, here is how the company's reported EPS stacks up:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 0.39 0.23 0.32 0.54
EPS Actual 0.42 0.48 0.51 0.55
Revenue Estimate 141.35 M 138.11 M 142.61 M 157.06 M
Revenue Actual 142.93 M 144.73 M 155.47 M 159.70 M

Stock Performance

Over the last 52-week period, shares of Novanta are up 47.46%.

Do not be surprised to see the stock move on comments made during its conference call. Novanta is scheduled to hold the call at 10:00:00 ET and can be accessed here.


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Posted-In: BZI-EPEarnings