NASDAQ$NOVT

Novanta Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Novanta reported strong Q4 2022 financial results, delivering revenue and profit growth despite a challenging operating environment.

Novanta Inc. reported a revenue of $218.4 million for Q4 2022, a 9.8% increase compared to Q4 2021. GAAP operating income was $26.8 million, and GAAP net income was $15.3 million. Adjusted Diluted EPS was $0.75, compared to $0.67 in the same quarter last year. The company anticipates continued focus on new product development and driving cash flows in 2023.

  • GAAP revenue increased by 9.8% to $218.4 million compared to Q4 2021.
  • Organic revenue growth was 13.8% for the quarter.
  • GAAP operating income increased to $26.8 million, compared to $21.7 million in Q4 2021.
  • Adjusted EBITDA was $46.1 million, compared to $42.6 million in Q4 2021.

Headline financials

Total Revenue

$218M

Previous: $199M+9.8%
EPS (adj)

$0.75

Previous: $0.67+11.9%
Adjusted EBITDA

$46.1M

Previous: $42.6M+8.2%
Capital Expenditures

$4.26M

Previous: $5.22M-18.4%
Free Cash Flow

$36.4M

Previous: $23.5M+54.7%
Net Income

$15.3M

Previous: $13.8M+10.9%
Operating Income

$26.8M

Previous: $21.7M+23.5%
Gross Profit

$94.5M

Previous: $82.9M+14.1%
Cash & Equivalents

$100M

Previous: $117M-14.7%
Total Assets

$1.24B

Previous: $1.23B+1.1%
Stock-Based Comp

$5.3M

Previous: $5.44M-2.5%

Revenue & EPS history

Novanta · Revenue · Quarterly

$218M

Q4 2022+9.8%vs Q4 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 first quarter of 2023, the Company expects GAAP revenue of approximately $210 million to $212 million. The Company expects Adjusted EBITDA to be in the range of $44 million to $45 million and Adjusted Diluted EPS to be in the range of $0.64 to $0.65. For the full year 2023, the Company expects GAAP revenue of approximately $890 million to $915 million. The Company expects Adjusted EBITDA to be in the range of $195 million to $207 million and Adjusted Diluted EPS to be in the range of $3.00 to $3.20.

Tailwinds

  • Sales in medical end markets expected to have solid demand in 2023.
  • Strong backlog.
  • Resilient customer demand.
  • Teams remain disciplined and diligent to serve customers.
  • Ability to deliver strong operating performance in the year ahead.

Headwinds

  • Some near term slowdown in some areas of the microelectronics end market capital spending.
  • Assumes no significant changes in foreign exchange rates.
  • Assumes a weighted average interest rate of 6%, and therefore $24 million to $26 million of net interest expense.
  • Inherent difficulty in forecasting and quantifying certain amounts that are necessary for reconciliations.
  • Potential penalties for violating foreign, U.S. federal, and state healthcare laws and regulations

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 2022

Historical avgQ4 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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