Novanta (NASDAQ:NOVT) Releases Quarterly Earnings Results, Beats Estimates By $0.06 EPS

Key Points

• Novanta beat quarterly expectations: Adjusted earnings were $0.89 per share versus the $0.83 consensus estimate, while revenue reached $265.81 million, above forecasts of $262.30 million and up 10.3% year over year.
• The company updated its guidance to $3.68–$3.74 in FY 2026 EPS and $0.95–$1.00 in third-quarter 2026 EPS.
• Despite the earnings beat, shares fell 4.0% to $153.12. Analysts maintain a consensus “Hold” rating with an average price target of $180.

Novanta (NASDAQ:NOVT - Get Free Report) released its quarterly earnings results on Wednesday. The technology company reported $0.89 earnings per share for the quarter, beating the consensus estimate of $0.83 by $0.06, FiscalAI reports. The company had revenue of $265.81 million for the quarter, compared to analyst estimates of $262.30 million. Novanta had a return on equity of 12.06% and a net margin of 5.35%.Novanta's quarterly revenue was up 10.3% compared to the same quarter last year. During the same quarter in the prior year, the firm posted $0.76 EPS. Novanta updated its FY 2026 guidance to 3.680-3.740 EPS and its Q3 2026 guidance to 0.950-1.000 EPS.

Novanta Trading Down 4.0%

Shares of NASDAQ NOVT traded down $6.37 during midday trading on Wednesday, hitting $153.12. The company's stock had a trading volume of 548,040 shares, compared to its average volume of 429,064. The company has a current ratio of 3.56, a quick ratio of 2.69 and a debt-to-equity ratio of 0.15. The business's 50 day moving average is $153.85 and its two-hundred day moving average is $141.21. Novanta has a 12-month low of $98.27 and a 12-month high of $171.85. The firm has a market cap of $5.78 billion, a P/E ratio of 47.61 and a beta of 1.68.

Insider Activity

In related news, CEO Matthijs Glastra sold 6,500 shares of the business's stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $161.13, for a total transaction of $1,047,345.00. Following the completion of the transaction, the chief executive officer owned 29,761 shares in the company, valued at $4,795,389.93. The trade was a 17.93% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 1.20% of the company's stock.

Institutional Trading of Novanta

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. Corient Private Wealth LLC purchased a new stake in shares of Novanta during the fourth quarter valued at $275,000. Invesco Ltd. increased its stake in Novanta by 9.0% in the 4th quarter. Invesco Ltd. now owns 68,089 shares of the technology company's stock worth $8,102,000 after buying an additional 5,600 shares during the period. Alberta Investment Management Corp purchased a new position in Novanta in the 4th quarter worth about $1,285,000. Mercer Global Advisors Inc. ADV bought a new stake in Novanta during the 4th quarter valued at about $314,000. Finally, Empowered Funds LLC lifted its holdings in Novanta by 16.7% during the 4th quarter. Empowered Funds LLC now owns 7,888 shares of the technology company's stock valued at $939,000 after buying an additional 1,128 shares in the last quarter. Hedge funds and other institutional investors own 98.35% of the company's stock.

Analyst Upgrades and Downgrades

Several research analysts have commented on the stock. Robert W. Baird set a $180.00 price objective on shares of Novanta in a research note on Tuesday, June 9th. Wall Street Zen downgraded shares of Novanta from a "buy" rating to a "hold" rating in a research note on Saturday. Finally, Weiss Ratings restated a "hold (c-)" rating on shares of Novanta in a report on Wednesday, July 15th. One investment analyst has rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat, Novanta presently has an average rating of "Hold" and a consensus target price of $180.00.

About Novanta

Novanta, Inc NASDAQ: NOVT is a global technology company that designs and manufactures precision components, subsystems and software used in advanced photonics and motion control applications. The company serves customers in the medical device and advanced industrial markets, supplying critical technologies for diagnostics and therapeutic systems, semiconductor and electronics manufacturing, and scientific instrumentation. Novanta's product portfolio includes laser control modules, optics, beam delivery systems, high-precision motors, actuators, stages, and fluidics solutions designed to meet stringent accuracy and reliability requirements.

Novanta's Photonics segment delivers laser and energy delivery components that enable minimally invasive surgical procedures and diagnostic imaging.

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