Latest news with #MatthijsGlastra
Yahoo
19-05-2025
- Business
- Yahoo
NOVT Q1 Earnings Call: Resilient Performance Amid Trade Headwinds and Strategic Acquisition
Medicine and manufacturing technology provider Novanta (NASDAQ:NOVT) met Wall Street's revenue expectations in Q1 CY2025, with sales up 1.1% year on year to $233.4 million. On the other hand, next quarter's revenue guidance of $235 million was less impressive, coming in 2.4% below analysts' estimates. Its non-GAAP profit of $0.74 per share was 9.9% above analysts' consensus estimates. Is now the time to buy NOVT? Find out in our full research report (it's free). Revenue: $233.4 million vs analyst estimates of $233.3 million (1.1% year-on-year growth, in line) Adjusted EPS: $0.74 vs analyst estimates of $0.67 (9.9% beat) Adjusted EBITDA: $49.98 million vs analyst estimates of $50.21 million (21.4% margin, in line) Revenue Guidance for Q2 CY2025 is $235 million at the midpoint, below analyst estimates of $240.7 million Adjusted EPS guidance for Q2 CY2025 is $0.73 at the midpoint, below analyst estimates of $0.75 EBITDA guidance for Q2 CY2025 is $52.5 million at the midpoint, in line with analyst expectations Operating Margin: 12.8%, in line with the same quarter last year Free Cash Flow Margin: 11.7%, similar to the same quarter last year Market Capitalization: $4.72 billion Novanta's first quarter results reflected steady execution in the face of ongoing global trade volatility. Management emphasized that the company's diversified exposure to medical, life sciences, and advanced industrial markets helped deliver growth in sales and non-GAAP profit. CEO Matthijs Glastra highlighted that patient procedure growth and hospital spending supported high single-digit growth in Novanta's Advanced Surgery business, while new product launches in robotics and automation contributed to design win momentum. Glastra noted, 'Our diversified business model and focus on innovation positioned us well to navigate the current environment.' Looking ahead, Novanta's guidance factored in uncertainty related to escalating tariffs and reciprocal trade measures. Management described the external environment as one of the most volatile since the early days of the pandemic, with trade disruptions and U.S. government funding cuts driving customer investment hesitancy, particularly in life sciences and industrial end markets. CFO Robert Buckley stated, 'We are proactively executing a multipronged tariff mitigation plan and accelerating our regional manufacturing strategy, but ongoing volatility limits long-term visibility. As a result, we are only issuing quarterly revenue guidance until trends stabilize.' Novanta's management outlined several operational and strategic factors that shaped first quarter performance and set the stage for the coming year. Health Care Market Growth: Novanta's Advanced Surgery business saw strong demand, driven by patient volume growth and hospital investments in minimally invasive and robotic surgery equipment. Management credited new product launches for their rapid adoption in surgical applications, helping offset weakness in other medical segments. Trade and Tariff Disruptions: Executives described heightened global trade uncertainty, including newly imposed and reciprocal tariffs, as a key challenge. Management said these actions increased annual manufacturing costs by about $20 million. The company has responded by shifting supply chains, negotiating duty exceptions, and implementing surcharges to customers. Strategic Acquisition: Novanta closed the acquisition of Keonn, a Spanish RFID hardware and AI-enhanced software provider. Management said Keonn's technology expands Novanta's capabilities in real-time inventory solutions for retail and healthcare, and accelerates its push into intelligent, software-driven subsystems. While short-term financial impact is limited, leadership expects material revenue contributions from Keonn beginning in 2026. Product Innovation and Design Wins: New product sales grew at a double-digit rate, with the 'vitality index' (the share of revenue from recently launched products) just below 20%. Notably, recent launches in motion control and sensing for warehouse automation, robotics, and humanoid applications helped drive double-digit growth in design wins within the Automation Enabling Technologies segment. Cost Containment and Supply Chain Resilience: Management announced $20 million in annualized cost savings initiatives, including accelerating regional manufacturing and consolidating production. Leaders said these efforts will offset lost profitability from deferred U.S.-to-China shipments and improve supply chain resilience against future trade disruptions. Management's outlook for the next quarter and the remainder of the year centers on navigating trade disruptions, accelerating new product ramps, and executing on cost containment, with ongoing uncertainty in certain end markets. Tariff Mitigation and Regionalization: Novanta is expediting its regional manufacturing strategy—producing more goods in China for China and in Europe for European customers—to limit tariff exposure and avoid supply chain bottlenecks. Management expects these changes to reduce risk over time, though full benefits will materialize in 2026. New Product Launches and Market Adoption: The company's guidance relies on continued momentum from recent launches in surgical robotics, smoke evacuation systems, and automation solutions. Management believes that new product ramps, particularly in medical devices, will drive growth even as life sciences and industrial demand remains subdued. Macroeconomic and Funding Headwinds: Ongoing uncertainty around trade policies and U.S. government funding for life sciences research, especially via National Institutes of Health (NIH) grants, pose risks to demand in certain segments. Management is prioritizing less capital-sensitive markets to help offset these headwinds. Lee Jagoda (CJS Securities): Asked about the revenue and profitability impact of the Keonn acquisition. CFO Robert Buckley stated Keonn should be slightly accretive to EPS in the first year, with a more meaningful revenue contribution expected in 2026. Brian Drab (William Blair): Inquired whether new product launches might face deferrals given current market volatility. CEO Matthijs Glastra responded that most new product revenue is in the medical device segment, which remains strong, and customer adoption has been positive so far. Brian Drab (William Blair): Sought clarity on the company's exposure to NIH funding cuts. Buckley explained that the precision medicine business unit is most affected but quantifying the exact impact is difficult due to the complexity of customer end markets. Rob Mason (Baird): Questioned the timeline and capital requirements for implementing regional manufacturing. Glastra and Buckley indicated the strategy is already underway, is capital-light, and will accelerate through 2025, with full benefits expected by early 2026. Rob Mason (Baird): Asked about growth prospects in semiconductor and EUV (extreme ultraviolet) markets. Glastra said green shoots are visible, especially in next-generation machines, and that demand remains positive despite broader industry caution. In the coming quarters, the StockStory team will monitor (1) progress in shifting supply chains and manufacturing to regional models, particularly the pace of in-China and in-Europe production for local markets; (2) the ramp and market adoption of recently launched products in advanced surgery, robotics, and automation; and (3) signs of stabilization or improvement in customer capital spending within life sciences and industrial segments. The impact and integration of the Keonn acquisition will also be a key area of focus as Novanta expands its software-driven solutions. Novanta currently trades at a forward EV-to-EBITDA ratio of 26×. Should you double down or take your chips? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,754% five-year return). 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National Post
13-05-2025
- Business
- National Post
Novanta to Present at the William Blair 45th Annual Growth Stock Conference on Tuesday, June 3, 2025
Article content Article content Article content BOSTON — Novanta Inc. (Nasdaq: NOVT) (the 'Company'), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that Matthijs Glastra, Chair & Chief Executive Officer is scheduled to present at the William Blair 45th Annual Growth Stock Conference on Tuesday, June 3, 2025, in Chicago, IL. Article content Novanta is a leading global supplier of core technology solutions that give medical, life science, and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery with a proven ability to solve complex technical challenges. This enables Novanta to engineer proprietary technology solutions that deliver extreme precision and performance, tailored to our customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation, the Novanta Growth System, and our customers' success. Novanta's common shares are quoted on Nasdaq under the ticker symbol 'NOVT.' Article content Article content Article content Article content Article content
Business Wire
13-05-2025
- Business
- Business Wire
Novanta to Present at the William Blair 45 th Annual Growth Stock Conference on Tuesday, June 3, 2025
BOSTON--(BUSINESS WIRE)--Novanta Inc. (Nasdaq: NOVT) (the "Company"), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that Matthijs Glastra, Chair & Chief Executive Officer is scheduled to present at the William Blair 45th Annual Growth Stock Conference on Tuesday, June 3, 2025, in Chicago, IL. About Novanta Novanta is a leading global supplier of core technology solutions that give medical, life science, and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery with a proven ability to solve complex technical challenges. This enables Novanta to engineer proprietary technology solutions that deliver extreme precision and performance, tailored to our customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation, the Novanta Growth System, and our customers' success. Novanta's common shares are quoted on Nasdaq under the ticker symbol 'NOVT.' More information about Novanta is available on the Company's website at For additional information, please contact Novanta Inc. Investor Relations at (781) 266-5137 or InvestorRelations@
National Post
06-05-2025
- Business
- National Post
Novanta Announces Financial Results for the First Quarter 2025
Article content Article content Article content BOSTON — Novanta Inc. (Nasdaq: NOVT) ('Novanta' or the 'Company'), a trusted technology partner to medical and advanced technology equipment manufacturers, today reported financial results for the first quarter 2025. Article content Financial Highlights Three Months Ended (In millions, except per share amounts) March 28, March 29, 2025 2024 GAAP Revenue $ 233.4 $ 230.9 Operating Income $ 32.4 $ 25.6 Net Income $ 21.2 $ 14.7 Diluted EPS $ 0.59 $ 0.41 Non-GAAP* Adjusted Operating Income $ 39.1 $ 40.1 Adjusted Diluted EPS $ 0.74 $ 0.74 Adjusted EBITDA $ 50.0 $ 49.7 *Reconciliations of GAAP to non-GAAP financial measures, as well as definitions for the non-GAAP financial measures included in this press release and the reasons for their use, are presented below. Article content 'I am proud to report that the Novanta team generated solid results in the first quarter that met or exceeded expectations, against the backdrop of a highly dynamic macroeconomic environment,' said Matthijs Glastra, Chair and Chief Executive of Novanta. 'Our diversified and resilient portfolio, strong balance sheet, and an execution-focused culture positions us well and enables us to navigate these uncertainties while capitalizing on growth opportunities over both the short and long-term. Finally, in the First Quarter our new product launches remain on track for the year, and we successfully closed a tuck-in acquisition in April.' Article content During the first quarter of 2025, Novanta generated GAAP revenue of $233.4 million, an increase of 1.1% or $2.5 million, versus the first quarter of 2024. Year-over-year changes in foreign currency exchange rates adversely impacted revenue by 0.6% or $1.5 million, during the first quarter of 2025. Organic Revenue Growth, which excludes the net impact of acquisitions and changes in foreign currency exchange rates, was 1.7% for the first quarter of 2025 (see 'Organic Revenue Growth' in the non-GAAP reconciliations below). Article content In the first quarter of 2025, GAAP operating income was $32.4 million, compared to $25.6 million in the first quarter of 2024. GAAP net income increased 45% to $21.2 million in the first quarter of 2025, compared to $14.7 million in the first quarter of 2024. GAAP diluted earnings per share ('EPS') was $0.59 in the first quarter of 2025, compared to $0.41 in the first quarter of 2024. Diluted weighted average shares outstanding was 36.1 million in the first quarter of 2025. Article content Adjusted Diluted EPS was $0.74 in the first quarter of 2025, compared to $0.74 in the first quarter of 2024. Adjusted EBITDA increased 1% to $50.0 million in the first quarter of 2025, compared to $49.7 million in the first quarter of 2024. Article content Operating cash flow for the first quarter of 2025 was $31.7 million, compared to $32.8 million for the first quarter of 2024. Article content 'Novanta has a solid track record of delivering and even accelerating out of uncertain environments by overcoming challenges and seizing opportunities. We are confident in our ability to excel by utilizing the Novanta Growth System, which emphasizes innovation, operational excellence, strategic alignment, and winning in high-growth markets. Our focus is on near-term execution, including launching new breakthrough products, while at the same time investing in and advancing our growth strategy in markets with long-term secular growth trends like precision robotics and automation, minimally invasive and robotic surgery, and precision medicine,' said Matthijs Glastra. Article content 'Due to the limited visibility of rapid trade policy changes, and the heightened uncertainty caused by the global trade disruptions, we are in an environment that makes long-term revenue predictions challenging beyond the second quarter. However, we are confident in our ability to adapt to the challenges and maintain the company's strong execution to deliver on our full year EBITDA commitments. As such, we expect to implement proactive cost containment actions by quarter-end, targeting approximately $20 million in annualized cost savings, to offset trade policy changes, potential purchasing deferrals by our customers due to reciprocal tariffs on our products, as well as global trade disruptions.' Article content With more near-term visibility, in the second quarter of 2025, the Company expects GAAP revenue of approximately $230 million to $240 million. The Company expects Adjusted Gross Profit Margin to be in the range of 45.5% to 46.5%. The Company expects Adjusted EBITDA to be in the range of $50 million to $55 million and Adjusted Diluted EPS to be in the range of $0.68 to $0.78. The Company's guidance assumes no significant changes in foreign exchange rates. Article content Novanta provides earnings guidance on a non-GAAP basis and does not provide earnings guidance on a GAAP basis, with the exception of GAAP revenue guidance. A reconciliation of the Company's forward-looking Adjusted Gross Profit Margin, Adjusted EBITDA and Adjusted Diluted EPS guidance to the most directly comparable GAAP financial measures is not provided because of the inherent difficulty in forecasting and quantifying certain amounts that are necessary for such reconciliations, including acquisitions and related expenses; impact of purchase price allocations for recently completed acquisitions; future changes in the fair value of contingent considerations; future restructuring expenses; foreign exchange gains/(losses); significant discrete income tax expenses (benefits); benefits or expenses associated with the completion of tax audits; divestitures and related expenses; gains and losses from sale of real estate assets; costs related to product line closures; intangible asset impairment charges and related asset write-offs; and other charges reflected in the Company's reconciliation of historical non-GAAP financial measures, the amounts of which, based on past experience, could be material. For additional information regarding Novanta's non-GAAP financial measures, see 'Use of Non-GAAP Financial Measures' below. Article content The Company will host a conference call on Tuesday, May 6, 2025 at 10:00 a.m. ET to discuss these results and to provide a business update. To access the call, please dial (888) 346-3959 prior to the scheduled conference call time. Alternatively, the conference call can be accessed online via a live webcast on the Events & Presentations page of the Investors section of the Company's website at Article content A replay of the audio webcast will be available approximately three hours after the conclusion of the call in the Investor Relations section of the Company's website at The replay will remain available until Monday, June 30, 2025. Article content Use of Non-GAAP Financial Measures Article content The non-GAAP financial measures used in this press release are Organic Revenue Growth, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Operating Income, Adjusted Operating Margin, Adjusted Income Before Income Taxes, Adjusted Income Tax Provision/(Benefit) and Effective Tax Rate, Adjusted Net Income, Adjusted Diluted EPS, Adjusted EBITDA, Adjusted EBITDA Margin, Free Cash Flow, Free Cash Flow as a Percentage of Net Income, and Net Debt. Article content The Company believes that these non-GAAP financial measures provide useful and supplementary information to investors regarding the operating performance of the Company. It is management's belief that these non-GAAP financial measures would be particularly useful to investors because of the significant changes that have occurred outside of the Company's day-to-day business in accordance with the execution of the Company's strategy. This strategy includes streamlining the Company's existing operations through site and functional consolidations, strategic divestitures and product line closures, expanding the Company's business through significant internal investments, and broadening the Company's product and service offerings through acquisitions of innovative and complementary technologies and solutions. The financial impact of certain elements of these activities, particularly acquisitions, divestitures, and site and functional restructurings, is often large relative to the Company's overall financial performance and can adversely affect the comparability of its operating results and investors' ability to analyze the business from period to period. Article content The Company's Adjusted EBITDA, Organic Revenue Growth and Adjusted Gross Profit Margin are used by management to evaluate operating performance, communicate financial results to the Board of Directors, benchmark results against historical performance and the performance of peers, and evaluate investment opportunities, including acquisitions and divestitures. In addition, Adjusted EBITDA, Organic Revenue Growth and Adjusted Gross Profit Margin are used to determine bonus payments for senior management and employees. The Company has also used in the past, and may use in the future, Adjusted Diluted EPS and Adjusted EBITDA as performance targets for certain performance-based restricted stock units. Accordingly, the Company believes that these non-GAAP financial measures provide greater transparency and insight into management's method of analysis. Article content Non-GAAP financial measures should not be considered as substitutes for, or superior to, measures of financial performance prepared in accordance with GAAP. They are limited in value because they exclude charges that have a material effect on the Company's reported results and, therefore, should not be relied upon as the sole financial measures to evaluate the Company's financial results. The non-GAAP financial measures are meant to supplement, and to be viewed in conjunction with, GAAP financial measures. Investors are encouraged to review the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures as provided in the tables accompanying this press release. Article content Certain statements in this release are 'forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995 and are based on current expectations and assumptions that are subject to risks and uncertainties. All statements contained in this news release that do not relate to matters of historical fact should be considered forward-looking statements, and are generally identified by words such as 'expect,' 'intend,' 'anticipate,' 'estimate,' 'believe,' 'future,' 'could,' 'should,' 'plan,' 'aim,' and other similar expressions. These forward-looking statements include, but are not limited to, statements regarding anticipated financial performance and financial position, including our financial outlook for the full year 2025 and second quarter of 2025; expectations for our end markets and market position; macroeconomic expectations; our competitive position, including our positioning for long-term growth, capital spending and momentum from new product launches; and other statements that are not historical facts. Article content These forward-looking statements are neither promises nor guarantees, but involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various important factors, including, but not limited to, the following: economic and political conditions and the effects of these conditions on our customers' businesses, capital expenditures and level of business activities; our dependence upon our ability to respond to fluctuations in product demand; our ability to continuously innovate, to introduce new products in a timely manner, and to manage transitions to new product innovations effectively; customer order timing and other similar factors; disruptions or breaches in security of our or our third-party providers' information technology systems; risks associated with our operations in foreign countries; our increased use of outsourcing in foreign countries; risks associated with increased outsourcing of components manufacturing; our exposure to increased tariffs, trade restrictions or taxes on our products; our ability to contain or reduce costs; violations of our intellectual property rights and our ability to protect our intellectual property against infringement by third parties; risk of losing our competitive advantage; our failure to successfully integrate recent and future acquisitions into our business; our ability to attract and retain key personnel; our restructuring and realignment activities; product defects or problems integrating our products with other vendors' products; disruptions in the supply of certain key components and other goods from our suppliers; our failure to accurately forecast component and raw material requirements leading to additional costs and significant delays in shipments; production difficulties and product delivery delays or disruptions; our exposure to extensive medical device regulations, which may impede or hinder the approval, certification or sale of our products and, in some cases, may ultimately result in an inability to obtain approval or certification of certain products or may result in the recall or seizure of previously approved or certified products; potential penalties for violating foreign and U.S. federal and state healthcare laws and regulations; impact of healthcare industry cost containment and healthcare reform measures; changes in governmental regulations related to our business or products; actual or perceived failures to comply with applicable data protection, privacy and security laws, regulations, standards, and other requirements; our failure to implement new information technology systems successfully; changes in foreign currency rates; our failure to realize the full value of our intangible assets; our reliance on original equipment manufacturer customers; the loss of sales, or significant reduction in orders from, any major customers; increasing scrutiny and changing expectations from investors, customers, governments and other stakeholders and third parties with respect to corporate sustainability policies and practices; the effects of climate change and related regulatory responses; our exposure to the credit risk of some of our customers and in weakened markets; being subject to U.S. federal income taxation even though we are a non-U.S. corporation; changes in tax laws and fluctuations in our effective tax rates; any need for additional capital to adequately respond to business challenges or opportunities and repay or refinance our existing indebtedness, which may not be available on acceptable terms or at all; our existing indebtedness limiting our ability to engage in certain activities; volatility in the market price for our common shares; and our failure to maintain appropriate internal controls in the future. Article content Other important risk factors that could affect the outcome of the events set forth in these statements and that could affect the Company's operating results and financial condition are discussed in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2024, as updated by our subsequent filings with the Securities and Exchange Commission. Such statements are based on the Company's beliefs and assumptions and on information currently available to the Company. The Company disclaims any obligation to publicly update or revise any such forward-looking statements as a result of developments occurring after the date of this document except as required by law. Article content Novanta is a leading global supplier of core technology solutions that give medical, life science, and advanced industrial original equipment manufacturers a competitive advantage. We combine deep proprietary expertise and competencies in precision medicine, precision manufacturing, robotics and automation, and advanced surgery with a proven ability to solve complex technical challenges. This enables Novanta to engineer proprietary technology solutions that deliver extreme precision and performance, tailored to our customers' demanding applications. The driving force behind our growth is the team of innovative professionals who share a commitment to innovation, the Novanta Growth System, and our customers' success. Novanta's common shares are quoted on Nasdaq under the ticker symbol 'NOVT.' Article content March 28, December 31, 2025 2024 ASSETS Current Assets Cash and cash equivalents $ 106,045 $ 113,989 Accounts receivable, net 164,201 151,026 Inventories 145,435 144,606 Prepaid expenses and other current assets 18,457 24,027 Total current assets 434,138 433,648 Property, plant and equipment, net 112,514 113,135 Operating lease assets 41,321 42,908 Intangible assets, net 177,724 185,844 Goodwill 589,054 584,098 Other assets 30,705 28,878 Total assets $ 1,385,456 $ 1,388,511 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Current portion of long-term debt $ 4,852 $ 4,691 Accounts payable 82,513 76,890 Accrued expenses and other current liabilities 82,225 86,210 Total current liabilities 169,590 167,791 Long-term debt 385,279 411,949 Operating lease liabilities 38,694 40,548 Other long-term liabilities 22,138 22,525 Total liabilities 615,701 642,813 Stockholders' Equity: Article content Adjusted Gross Profit and Adjusted Gross Profit Margin by Reportable Segment (Non-GAAP): Three Months Ended March 28, March 29, 2025 2024 Automation Enabling Technologies Gross Profit (GAAP) $ 59,386 $ 55,502 Gross Profit Margin (GAAP) 48.2 % 47.3 % Amortization of intangible assets 1,359 1,569 Adjusted Gross Profit (Non-GAAP) $ 60,745 $ 57,071 Adjusted Gross Profit Margin (Non-GAAP) 49.3 % 48.6 % Medical Solutions Gross Profit (GAAP) $ 45,961 $ 46,222 Gross Profit Margin (GAAP) 41.7 % 40.7 % Amortization of intangible assets 2,202 2,123 Acquisition fair value adjustments — 2,777 Adjusted Gross Profit (Non-GAAP) $ 48,163 $ 51,122 Adjusted Gross Profit Margin (Non-GAAP) 43.7 % 45.0 % Unallocated Gross Profit (GAAP) $ (993 ) $ (1,308 ) Adjusted Gross Profit (Non-GAAP) $ (993 ) $ (1,308 ) Novanta Inc. Gross Profit (GAAP) $ 104,354 $ 100,416 Gross Profit Margin (GAAP) 44.7 % 43.5 % Amortization of intangible assets 3,561 3,692 Acquisition fair value adjustments — 2,777 Adjusted Gross Profit (Non-GAAP) $ 107,915 $ 106,885 Adjusted Gross Profit Margin (Non-GAAP) 46.2 % 46.3 % Article content Adjusted EBITDA (Non-GAAP): Three Months Ended March 28, March 29, 2025 2024 Net Income (GAAP) $ 21,208 $ 14,676 Net Income Margin 9.1 % 6.4 % Interest (income) expense, net 5,644 8,254 Income tax provision (benefit) 5,210 2,240 Depreciation and amortization 13,563 12,929 Share-based compensation 7,100 6,077 Restructuring, acquisition and related costs (3,106 ) 2,298 Acquisition fair value adjustments — 2,777 Other, net 359 437 Adjusted EBITDA (Non-GAAP) $ 49,978 $ 49,688 Adjusted EBITDA Margin (Non-GAAP) 21.4 % 21.5 % Article content Free Cash Flow (Non-GAAP): Three Months Ended March 28, March 29, 2025 2024 Net Cash Provided by Operating Activities (GAAP) $ 31,684 $ 32,829 Less: Purchases of property, plant and equipment (4,284 ) (6,415 ) Plus: Proceeds from sale of property, plant and equipment 5,537 — Free Cash Flow (Non-GAAP) $ 32,937 $ 26,414 Net Income (GAAP) $ 21,208 $ 14,676 Net Cash Provided by Operating Activities as a Percentage of Net Income 149.4 % 223.7 % Free Cash Flow as a Percentage of Net Income 155.3 % 180.0 % Article content Non-GAAP Financial Measures Article content The following provides additional explanations for non-GAAP financial measures used by the Company, including explanations for certain non-GAAP adjustments that may not be present in the quarterly disclosures included in the current earnings release but have been used by the Company in the two most recent fiscal years. See the tables above for the calculations of the non-GAAP financial measures used in this earnings release. Article content Organic Revenue Growth Article content The Company defines the term 'organic revenue' as revenue excluding the impact from business acquisitions, divestitures, product line discontinuations, and the effect of foreign currency translation. The Company uses the related term 'organic revenue growth' to refer to the financial performance metric of comparing current period organic revenue with the reported revenue of the corresponding period in the prior year. The Company believes that this non-GAAP financial measure, when taken together with our GAAP financial measures, allows the Company and its investors to better measure the Company's performance and evaluate long-term performance trends. Organic revenue growth also facilitates easier comparisons of the Company's performance with prior and future periods and relative comparisons to its peers. The Company excludes the effect of foreign currency translation from these measures because foreign currency translation is subject to volatility and can obscure underlying business trends. The Company excludes the effect of acquisitions and divestitures because these activities can vary dramatically between reporting periods and between the Company and its peers, which the Company believes makes comparisons of long-term performance trends difficult for management and investors. Organic Revenue Growth is also used as a performance metric to determine bonus payments for senior management and employees. Article content The calculation of Adjusted Gross Profit and Adjusted Gross Profit Margin excludes amortization of acquired intangible assets and amortization of inventory fair value adjustments related to business acquisitions because: (i) the amounts are non-cash; (ii) the Company cannot influence the timing and amount of future expense recognition; and (iii) excluding such expenses provides investors and management better visibility into the underlying trends and performance of our businesses. The Company also excludes inventory related charges associated with product line closures as these costs occurred outside of the Company's day-to-day business for the reasons described above in the introductory paragraphs of the 'Use of Non-GAAP Financial Measures.' Article content Adjusted Operating Income and Adjusted Operating Margin Article content The calculation of Adjusted Operating Income and Adjusted Operating Margin excludes amortization of acquired intangible assets and amortization of inventory fair value adjustments related to business acquisitions for the reasons described above for Adjusted Gross Profit and Adjusted Gross Profit Margin. The Company also excludes restructuring, and acquisition and related costs due to the significant changes that have occurred outside of the Company's day-to-day business for the reasons described above in the introductory paragraphs of the 'Use of Non-GAAP Financial Measures.' Article content The calculation of Adjusted Income Before Income Taxes excludes amortization of acquired intangible assets, amortization of inventory fair value adjustments related to business acquisitions, and restructuring, and acquisition and related costs for the reasons described above for Adjusted Operating Income and Adjusted Operating Margin. The Company also excludes foreign exchange transaction gains (losses) from the calculation of Adjusted Income Before Income Taxes as the Company cannot fully influence the timing and amount of foreign exchange transaction gains (losses). Article content Non-GAAP Income Tax Provision/(Benefit) and Effective Tax Rate are calculated based on the Adjusted Income Before Income Taxes by jurisdiction, the applicable tax rates in effect for the respective jurisdictions and the income tax effect of non-GAAP adjustments discussed above. In addition, the Company excludes significant discrete income tax expenses (benefits) related to releases of valuation allowances and uncertain tax positions not related to current year activity, tax audits, certain changes in tax laws, and acquisition related tax planning actions on the Company's effective tax rate. Article content Because Income Before Income Taxes is included in determining Net Income, the calculation of Adjusted Net Income also excludes amortization of acquired intangible assets, amortization of inventory fair value adjustments related to business acquisitions, restructuring, acquisition and related costs, and foreign exchange transaction gains (losses) for the reasons described above for Adjusted Income Before Income Taxes. In addition, the Company excludes (i) significant discrete income tax expenses (benefits) related to releases of valuation allowances and uncertain tax positions, tax audits or amendments to prior year returns, certain changes in tax laws, and acquisition related tax planning actions on the Company's effective tax rate; and (ii) the income tax effect of non-GAAP adjustments discussed above. Article content Adjusted Diluted EPS Article content Because Net Income is used in the calculation of Diluted EPS, Adjusted Diluted EPS excludes: (i) amortization of acquired intangible assets; (ii) amortization of inventory fair value adjustments related to business acquisitions; (iii) restructuring, acquisition and related costs; (iv) foreign exchange transaction gains (losses); (v) significant discrete income tax expenses (benefits) related to releases of valuation allowances, uncertain tax positions, tax audits or amendments to prior year returns, certain changes in tax laws, and acquisition related tax planning actions on the Company's effective tax rate; and (vi) the income tax effect of non-GAAP adjustments for the reasons described above for Adjusted Net Income. Article content The Company defines Adjusted EBITDA as income before deducting interest (income) expense, income tax provision (benefit), depreciation, amortization, non-cash share-based compensation, restructuring, acquisition and related costs, amortization of inventory fair value adjustments related to business acquisitions, other non-operating (income) expense items, including foreign exchange transaction (gains) losses and net periodic pension costs of the Company's frozen U.K. defined benefit pension plan for the reasons described above in the introductory paragraphs of the 'Use of Non-GAAP Financial Measures.' Article content Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of Revenue. Article content In evaluating Adjusted EBITDA and Adjusted EBITDA Margin, you should be aware that in the future the Company may incur expenses that are the same as, or similar to, some of the adjustments in this presentation. Article content The Company defines Free Cash Flow as net cash provided by operating activities less cash paid for purchases of property, plant and equipment and plus cash proceeds from sales of property, plant and equipment. Free Cash Flow as a Percentage of Net Income is defined as Free Cash Flow divided by Net Income. Management believes these non-GAAP financial measures are important indicators of the Company's liquidity as well as its ability to service its outstanding debt and to fund future growth. Article content Article content Article content Article content Article content Contacts Article content Article content Article content
Yahoo
16-04-2025
- Business
- Yahoo
Reflecting On Electronic Components Stocks' Q4 Earnings: Novanta (NASDAQ:NOVT)
Wrapping up Q4 earnings, we look at the numbers and key takeaways for the electronic components stocks, including Novanta (NASDAQ:NOVT) and its peers. Like many equipment and component manufacturers, electronic components companies are buoyed by secular trends such as connectivity and industrial automation. More specific pockets of strong demand include data centers and telecommunications, which can benefit companies whose optical and transceiver offerings fit those markets. But like the broader industrials sector, these companies are also at the whim of economic cycles. Consumer spending, for example, can greatly impact these companies' volumes. The 10 electronic components stocks we track reported a mixed Q4. As a group, revenues beat analysts' consensus estimates by 3.1% while next quarter's revenue guidance was 0.6% below. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 19.7% since the latest earnings results. Originally a pioneer in the laser scanning industry during the late 1960s, Novanta (NASDAQ:NOVT) offers medicine and manufacturing technology to the medical, life sciences, and manufacturing industries. Novanta reported revenues of $238.1 million, up 12.5% year on year. This print fell short of analysts' expectations by 0.9%. Overall, it was a softer quarter for the company with full-year EBITDA guidance missing analysts' expectations. 'Novanta achieved solid financial results for the full year 2024, effectively navigating a persistently challenging environment,' said Matthijs Glastra, Chair and Chief Executive Officer. The stock is down 18.2% since reporting and currently trades at $112.95. Read our full report on Novanta here, it's free. Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ:AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes. Advanced Energy reported revenues of $415.4 million, up 2.5% year on year, outperforming analysts' expectations by 5.5%. The business had an exceptional quarter with an impressive beat of analysts' EBITDA estimates. The stock is down 20.8% since reporting. It currently trades at $88.09. Is now the time to buy Advanced Energy? Access our full analysis of the earnings results here, it's free. Emerging from Vishay Intertechnology in 2010, Vishay Precision (NYSE:VPG) operates as a global provider of precision measurement and sensing technologies. Vishay Precision reported revenues of $72.65 million, down 18.8% year on year, falling short of analysts' expectations by 1.3%. It was a disappointing quarter as it posted a significant miss of analysts' EBITDA and EPS estimates. Vishay Precision delivered the slowest revenue growth in the group. As expected, the stock is down 18.3% since the results and currently trades at $19.61. Read our full analysis of Vishay Precision's results here. Founded by a former CEO and Harvard-educated entrepreneur Scott Keeneyn, nLIGHT (NASDAQ:LASR) offers semiconductor and fiber lasers to the industrial, aerospace & defense, and medical sectors. nLIGHT reported revenues of $47.38 million, down 8.7% year on year. This result came in 3.7% below analysts' expectations. Overall, it was a slower quarter as it also logged a significant miss of analysts' EBITDA and EPS estimates. nLIGHT had the weakest performance against analyst estimates among its peers. The stock is down 22.7% since reporting and currently trades at $7.01. Read our full, actionable report on nLIGHT here, it's free. The developer of the first blade-type automotive fuse, Littelfuse (NASDAQ:LFUS) provides electrical protection and control components for the automotive, industrial, electronics, and telecommunications industries. Littelfuse reported revenues of $529.5 million, flat year on year. This print surthe next quarter,passed analysts' expectations by 1%. Taking a step back, it was a slower quarter as it logged EPS guidance for next quarter missing analysts' expectations. The stock is down 31.1% since reporting and currently trades at $154.27. Read our full, actionable report on Littelfuse here, it's free. The Fed's interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump's presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025. 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