NASDAQ$NOVT

Novanta Inc · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Novanta's financial performance for Q2 2021 showed revenue of $167.5 million, net income of $11.7 million, and adjusted EPS of $0.62.

Novanta reported strong financial results for the second quarter of 2021, with double-digit growth in sales, bookings, and profit. Customer demand accelerated in advanced industrial and medical application areas, with bookings increasing 77% year over year. The company is raising its full year guidance.

  • GAAP revenue was $167.5 million, a 15.8% increase year-over-year.
  • GAAP consolidated net income was $11.7 million.
  • GAAP diluted earnings per share was $0.33.
  • Adjusted EBITDA was $37.0 million, compared to $30.8 million in the second quarter of 2020.

Headline financials

Total Revenue

$168M

Previous: $145M+15.8%
EPS (adj)

$0.62

Previous: $0.48+29.2%
Adjusted EBITDA

$37M

Previous: $30.8M+20.1%
Capital Expenditures

-$8.64M

Previous: -$4.64M-86.3%
Free Cash Flow

$3.02M

Previous: $7.02M-57.0%
Net Income

$11.7M

Previous: $11.7M+0.0%
Operating Income

$16M

Previous: $13.7M+16.7%
Gross Profit

$72.4M

Previous: $58.7M+23.3%
Cash & Equivalents

$134M

Previous: $97.5M+37.3%
Total Assets

$878M

Previous: $861M+2.0%
Stock-Based Comp

$5.04M

Previous: $5.65M-10.9%

Revenue & EPS history

Novanta · Revenue · Quarterly

$168M

Q2 2021+15.8%vs Q2 2020
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

Novanta · $83.4M total across 1 segment · Q3 2023

  • Medical Solutions
    $83.4M

Forward guidance

For the third quarter of 2021, the Company expects GAAP revenue of approximately $165 million to $170 million. The Company expects Adjusted EBITDA to be in the range of $35 million to $37 million and Adjusted Diluted EPS to be in the range of $0.55 to $0.60. For the full year 2021, the Company expects GAAP revenue of approximately $660 million to $670 million. The Company expects Adjusted EBITDA to be in the range of $140 million to $143 million and Adjusted Diluted EPS to be in the range of $2.30 to $2.40.

Tailwinds

  • Expects GAAP revenue of approximately $165 million to $170 million for Q3 2021.
  • Expects Adjusted EBITDA to be in the range of $35 million to $37 million for Q3 2021.
  • Expects Adjusted Diluted EPS to be in the range of $0.55 to $0.60 for Q3 2021.
  • Expects GAAP revenue of approximately $660 million to $670 million for full year 2021.
  • Expects Adjusted EBITDA to be in the range of $140 million to $143 million for full year 2021.

Headwinds

  • Guidance does not include the impact of the expected closing of the Schneider Electric Motion USA Inc. (“SEM”) and ATI Industrial Automation Inc. (“ATI”) acquisitions for Q3 and full year 2021.
  • Guidance assumes no significant changes in foreign exchange rates.
  • Uncertainty of the supply chain disruptions that are seen in the market.
  • Acquisitions are subject to customary closing conditions, including regulatory review.
  • Company may incur expenses that are the same as, or similar to, some of the adjustments in this presentation.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2021

Historical avgQ2 2021

+2.3%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.7%

Avg return

30 days after

64%

41 / 64 earnings

Positive

+22.9%

Q3 2018

Best reaction

-11.3%

Q2 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.2%+10.5%+11.6%
Q4 2025-2.2%-7.9%-19.4%
Q3 2025+8.4%-17.0%-10.0%
Q1 2025-1.7%+2.4%+5.3%
Q4 2024+7.2%+4.6%-4.2%
Q3 2024+4.5%+4.9%-4.5%
Q2 2024+7.6%+9.4%+10.3%
Q1 2024-1.6%+0.1%+0.8%
Q4 2023+9.9%+12.1%+11.1%
Q3 2023-11.0%-11.0%+9.4%
Q2 2023-11.3%-11.2%-6.9%
Q1 2023+2.2%+0.5%+4.8%
Q4 2022-6.1%-3.7%+1.4%
Q3 2022-3.5%+10.5%+7.2%
Q2 2022-0.4%-0.5%-13.6%
Q1 2022+3.1%+9.5%+3.9%
Q4 2021-1.0%-2.0%+4.1%
Q3 2021-7.4%-8.2%-5.7%
Q2 2021+5.1%+3.8%+8.9%
Q1 2021+2.5%+7.0%+8.1%
Q4 2020-1.3%-4.1%-0.3%
Q3 2020-2.3%-7.5%-2.3%
Q2 2020+4.8%+3.4%-6.1%
Q1 2020+6.6%+3.8%+14.2%
Q4 2019+5.6%+8.4%-10.0%
Q3 2019-5.9%-8.3%-0.1%
Q2 2019-5.3%-8.4%+2.0%
Q1 2019-5.8%-5.3%-6.9%
Q4 2018+4.7%+4.6%+8.6%
Q3 2018+22.9%+21.7%-1.9%
Q2 2018-0.6%+1.9%+13.2%
Q1 2018+2.8%+3.9%+8.1%
Q4 2017+2.8%+0.9%-4.1%
Q3 2017+10.1%+10.1%-1.5%
Q2 2017-0.8%+1.9%+4.0%
Q1 2017+8.6%+12.0%+34.0%
Q4 2016+0.2%+3.9%+5.5%
Q3 2016-1.2%+1.5%+16.9%
Q2 2016+1.7%+2.9%+7.9%
Q1 2016-0.6%
Q4 2015+2.1%
Q3 2015+2.7%
Q2 2015+1.1%
Q1 2015+0.2%
Q4 2014+1.1%
Q3 2014+0.7%
Q2 2014+4.1%
Q1 2014+1.3%
Q4 2013+2.3%
Q3 2013+9.9%
Q2 2013-4.1%
Q1 2013+0.2%
Q4 2009-1.5%
Q4 2012-1.5%
Q3 2012+0.4%
Q2 2012-8.6%
Q1 2011+10.8%
Q1 2012+2.6%
Q4 2011+0.3%
Q3 2010+6.0%
Q3 2011+6.0%
Q4 2010+18.8%
Q2 2010+18.8%
Q2 2011+18.8%

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