NASDAQ$NOVT

Novanta Inc · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Novanta reported revenue and profit performance above expectations in a dynamic operating environment, with record revenue, adjusted gross margin, and adjusted EBITDA for the full year.

Novanta's Q4 2023 saw a slight decrease in revenue compared to Q4 2022, but the company delivered revenue and profit performance above expectations. Full year 2023 results included record revenue, adjusted gross margin, and adjusted EBITDA.

  • GAAP Revenue was $211.6 million, a decrease of 3.1% year-over-year.
  • GAAP Operating Income was $21.7 million, compared to $26.8 million in Q4 2022.
  • GAAP Net Income was $12.5 million, compared to $15.3 million in Q4 2022.
  • Adjusted EBITDA was $45.3 million, compared to $46.1 million in Q4 2022.

Headline financials

Total Revenue

$212M

Previous: $218M-3.1%
EPS (adj)

$0.63

Previous: $0.75-16.0%
Adjusted EBITDA

$45.3M

Previous: $46.1M-1.7%
Capital Expenditures

-$5.98M

Previous: $4.26M-240.5%
Net Income

$12.5M

Previous: $15.3M-18.3%
Operating Income

$21.7M

Previous: $26.8M-19.0%
Gross Profit

$91.5M

Previous: $94.5M-3.3%
R&D Expense

$23.5M

No prior period
Stock-Based Comp

$7.21M

Previous: $5.3M+36.1%

Revenue & EPS history

Novanta · Revenue · Quarterly

$212M

Q4 2023-3.1%vs Q4 2022
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 full year 2024, the Company expects GAAP revenue of approximately $975 million to $1 billion. The Company expects Adjusted Gross Profit Margin to be approximately 46.0% to 47.0%. The Company expects Adjusted EBITDA to be in the range of $215 million to $225 million and Adjusted Diluted EPS to be in the range of $3.10 to $3.35.

Tailwinds

  • Innovative products to help customers differentiate in their end markets.
  • Positioned in secular high-growth markets.
  • Right technologies.
  • World-class team dedicated and aligned to the Novanta mission.
  • Attractive financial framework and sustaining long-term shareholder value.

Headwinds

  • Assumes no significant changes in foreign exchange rates.
  • Inherent difficulty in forecasting and quantifying certain amounts that are necessary for reconciliations.
  • Acquisitions and related expenses.
  • Impact of purchase price allocations for recently completed acquisitions.
  • Future changes in the fair value of contingent considerations.

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 2023

Historical avgQ4 2023

+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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