In This Article:
Semiconductor quality control company Nova (NASDAQ:NVMI) will be reporting results tomorrow before market open. Here’s what investors should know.
Nova beat analysts’ revenue expectations by 1.6% last quarter, reporting revenues of $179 million, up 38.9% year on year. It was a strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts’ adjusted operating income estimates.
Is Nova a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Nova’s revenue to grow 38.7% year on year to $186.2 million, a reversal from the 11.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.82 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nova has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3% on average.
Looking at Nova’s peers in the semiconductor manufacturing segment, some have already reported their Q4 results, giving us a hint as to what we can expect. FormFactor delivered year-on-year revenue growth of 12.7%, meeting analysts’ expectations, and KLA Corporation reported revenues up 23.7%, topping estimates by 4.5%. FormFactor traded down 6.8% following the results while KLA Corporation’s stock price was unchanged.
Read our full analysis of FormFactor’s results here and KLA Corporation’s results here.
Investors in the semiconductor manufacturing segment have had fairly steady hands going into earnings, with share prices down 1.5% on average over the last month. Nova is up 10.5% during the same time and is heading into earnings with an average analyst price target of $249.45 (compared to the current share price of $252.59).
Today’s young investors likely haven’t read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.