NASDAQ$NOVT

Novanta Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Novanta reported record third-quarter results, with double-digit growth in sales and Adjusted EBITDA, driven by strong customer demand across medical and advanced industrial applications.

Novanta Inc. reported a strong third quarter in 2022, with a 26% increase in GAAP revenue to $223 million and a GAAP consolidated net income of $22 million. The company's Adjusted EBITDA reached $49 million, and Adjusted Earnings Per Share increased to $0.81. Despite inflationary pressures, Novanta's teams delivered excellent financial performance, with customer demand remaining strong and backlog at near-record levels.

  • GAAP Revenue increased 26% to $223 million.
  • GAAP Consolidated Net Income was $22 million.
  • GAAP Diluted Earnings Per Share increased 66% to $0.63.
  • Adjusted Earnings Per Share increased 8% to $0.81.

Headline financials

Total Revenue

$223M

Previous: $178M+25.5%
EPS (adj)

$0.81

Previous: $0.75+8.0%
Adjusted EBITDA

$49.4M

Previous: $40.4M+22.3%
Capital Expenditures

-$15.4M

Previous: -$14.8M-4.2%
Free Cash Flow

$7.11M

Previous: -$1.16M+714.6%
Net Income

$22.5M

Previous: $13.6M+65.3%
Operating Income

$28.7M

Previous: $15.3M+87.6%
Gross Profit

$98.4M

Previous: $76.3M+29.0%
Cash & Equivalents

$84.6M

Previous: $102M-17.4%
Total Assets

$1.21B

Previous: $1.21B-0.2%
Stock-Based Comp

$5.95M

Previous: $8.49M-29.9%

Revenue & EPS history

Novanta · Revenue · Quarterly

$223M

Q3 2022+25.5%vs Q3 2021
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

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

  • Medical Solutions
    $83.4M

Forward guidance

For the fourth quarter of 2022, the Company expects GAAP revenue of approximately $215 million to $217 million, demonstrating reported growth of 8% to 9%. The Company expects Adjusted EBITDA to be in the range of $45.0 million to $46.0 million and Adjusted Diluted EPS to be in the range of $0.70 to $0.74. For the full year 2022, the Company expects GAAP revenue of approximately $857 million to $859 million, demonstrating reported growth of 21% to 22%. The Company expects Adjusted EBITDA to be in the range of $183 million to $184 million and Adjusted Diluted EPS to be in the range of $3.02 to $3.06.

Tailwinds

  • GAAP revenue of approximately $215 million to $217 million, demonstrating reported growth of 8% to 9%.
  • Adjusted EBITDA to be in the range of $45.0 million to $46.0 million
  • Adjusted Diluted EPS to be in the range of $0.70 to $0.74.
  • GAAP revenue of approximately $857 million to $859 million, demonstrating reported growth of 21% to 22%.
  • Adjusted EBITDA to be in the range of $183 million to $184 million

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 Q3 2022

Historical avgQ3 2022

+2.3%

Avg return

Earnings day

+1.6%

Avg return

5 days after

+2.4%

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%
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 2011+18.8%
Q2 2010+18.8%

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