Novanta (NASDAQ:NOVT) Issues Earnings Results, Beats Expectations By $0.02 EPS

Key Points

• Novanta reported quarterly earnings of $0.76 EPS, beating expectations by $0.02 and showing a 2.2% increase in revenue year-over-year.
• The company updated its FY 2025 guidance, projecting earnings per share between $3.220 and $3.360.
• Analysts have upgraded Novanta from a "hold" to a "buy" rating, indicating positive sentiment on Wall Street.

Novanta (NASDAQ:NOVT - Get Free Report) posted its quarterly earnings data on Tuesday. The technology company reported $0.76 EPS for the quarter, topping analysts' consensus estimates of $0.74 by $0.02, Zacks reports. The business had revenue of $241.05 million for the quarter, compared to analyst estimates of $237.97 million. Novanta had a return on equity of 14.70% and a net margin of 6.41%. The firm's revenue for the quarter was up 2.2% on a year-over-year basis. During the same period in the previous year, the company posted $0.73 earnings per share. Novanta updated its FY 2025 guidance to 3.220-3.360 EPS and its Q3 2025 guidance to 0.780-0.850 EPS.

Novanta Stock Performance

Shares of Novanta stock traded up $1.94 during trading on Friday, reaching $115.67. The company's stock had a trading volume of 448,198 shares, compared to its average volume of 315,927. Novanta has a one year low of $98.76 and a one year high of $186.75. The firm has a market cap of $4.16 billion, a price-to-earnings ratio of 68.04 and a beta of 1.48. The business's fifty day moving average price is $125.45 and its 200-day moving average price is $129.04. The company has a debt-to-equity ratio of 0.57, a quick ratio of 1.70 and a current ratio of 2.54.

Wall Street Analysts Forecast Growth

Separately, Wall Street Zen upgraded Novanta from a "hold" rating to a "buy" rating in a research note on Sunday, August 3rd.

Institutional Investors Weigh In On Novanta

Institutional investors have recently added to or reduced their stakes in the company. AQR Capital Management LLC grew its position in Novanta by 78.9% during the first quarter. AQR Capital Management LLC now owns 4,231 shares of the technology company's stock worth $537,000 after buying an additional 1,866 shares in the last quarter. Jane Street Group LLC grew its position in Novanta by 1,762.5% during the first quarter. Jane Street Group LLC now owns 61,631 shares of the technology company's stock worth $7,881,000 after buying an additional 58,322 shares in the last quarter. Finally, Goldman Sachs Group Inc. grew its position in Novanta by 1.6% during the first quarter. Goldman Sachs Group Inc. now owns 419,037 shares of the technology company's stock worth $53,582,000 after buying an additional 6,533 shares in the last quarter. 98.35% of the stock is owned by institutional investors and hedge funds.

Novanta Company Profile

Novanta, Inc engages in the provision of core technology solutions to healthcare and advanced industrial original equipment manufacturers. It operates through the following segments: Photonics, Vision, and Precision Motion. The Photonics segment designs, manufactures, and markets photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products.