NASDAQ$NOVT

Novanta Inc · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported financial results for the fourth quarter and full year 2019.

Novanta's Q4 2019 revenue was stronger than expected, with the medical business growing at a double-digit pace and new product revenue reaching record levels, despite challenges in industrial capital spending markets.

  • GAAP revenue was $159.7 million, a 2.3% increase year-over-year.
  • GAAP operating income was $13.0 million, compared to $15.7 million in Q4 2018.
  • Adjusted EBITDA was $30.5 million, compared to $30.8 million in Q4 2018.
  • Operating cash flow was $35.4 million, compared to $21.9 million in Q4 2018.

Headline financials

Total Revenue

$160M

Previous: $156M+2.3%
EPS (adj)

$0.55

Previous: $0.56-1.8%
Adjusted EBITDA

$30.5M

Previous: $30.8M-0.7%
Capital Expenditures

$2.79M

Previous: $3.01M-7.3%
Free Cash Flow

$32.6M

Previous: $18.9M+72.4%
Net Income

$9.22M

Previous: $11.6M-20.8%
Operating Income

$13M

Previous: $15.7M-17.2%
Gross Profit

$66M

Previous: $64.5M+2.3%
Cash & Equivalents

$78.9M

Previous: $82M-3.8%
Total Assets

$870M

Previous: $720M+20.9%
Stock-Based Comp

$1.99M

Previous: $2.24M-11.0%

Revenue & EPS history

Novanta · Revenue · Quarterly

$160M

Q4 2019+2.3%vs Q4 2018
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 first quarter of 2020, the Company expects GAAP revenue of approximately $144 million to $154 million. We estimate that the effects of COVID-19 on our revenue in the first quarter will be approximately $10 million to $15 million. The Company expects Adjusted EBITDA to be in the range of $23 million to $26 million and Adjusted Diluted EPS to be in the range of $0.34 to $0.42.

Tailwinds

  • Momentum around new products introductions and design win activities.
  • Strong medical end market demand for our products.
  • Expects Adjusted EBITDA to be in the range of $23 million to $26 million.
  • Expects Adjusted Diluted EPS to be in the range of $0.34 to $0.42.
  • Believes this disruption is only temporary and that overall, we remain fundamentally strong and well positioned for growth and success.

Headwinds

  • Expecting short-term disruptions to our business in the first quarter due to the public health epidemic originating in China.
  • Epidemic is expected to have a temporary impact on our sales of products sold directly into China.
  • Epidemic is expected to have a temporary impact on our supply of products sourced from China to feed our global factories.
  • Epidemic is expected to have a temporary impact on our demand from our non-China-based customers due to their dependencies on the Chinese market.
  • The effects of the COVID-19 outbreak represent our view as of today, based on our current expectations regarding the timing of business resumption in our operations, customers, and our Chinese supply chain.

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 Q4 2019

Historical avgQ4 2019

+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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