Latest news with #Novanta
Business Insider
6 days ago
- Business
- Business Insider
William Blair Reaffirms Their Buy Rating on Novanta (NOVT)
In a report released today, Brian Drab from William Blair maintained a Buy rating on Novanta (NOVT – Research Report). The company's shares closed yesterday at $125.74. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Drab is a 4-star analyst with an average return of 17.8% and a 66.15% success rate. Drab covers the Industrials sector, focusing on stocks such as Xometry, EnerSys, and Lindsay. Novanta has an analyst consensus of Moderate Buy, with a price target consensus of $139.00.
Yahoo
26-05-2025
- Business
- Yahoo
Here's What To Make Of Novanta's (NASDAQ:NOVT) Decelerating Rates Of Return
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So, when we ran our eye over Novanta's (NASDAQ:NOVT) trend of ROCE, we liked what we saw. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Novanta, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = US$129m ÷ (US$1.4b - US$170m) (Based on the trailing twelve months to March 2025). Therefore, Novanta has an ROCE of 11%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Electronic industry average of 10%. Check out our latest analysis for Novanta Above you can see how the current ROCE for Novanta compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Novanta . The trend of ROCE doesn't stand out much, but returns on a whole are decent. The company has employed 72% more capital in the last five years, and the returns on that capital have remained stable at 11%. 11% is a pretty standard return, and it provides some comfort knowing that Novanta has consistently earned this amount. Stable returns in this ballpark can be unexciting, but if they can be maintained over the long run, they often provide nice rewards to shareholders. In the end, Novanta has proven its ability to adequately reinvest capital at good rates of return. In light of this, the stock has only gained 15% over the last five years for shareholders who have owned the stock in this period. So to determine if Novanta is a multi-bagger going forward, we'd suggest digging deeper into the company's other fundamentals. If you're still interested in Novanta it's worth checking out our to see if it's trading at an attractive price in other respects. While Novanta isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
26-05-2025
- Business
- Yahoo
Here's What To Make Of Novanta's (NASDAQ:NOVT) Decelerating Rates Of Return
If you're not sure where to start when looking for the next multi-bagger, there are a few key trends you should keep an eye out for. Ideally, a business will show two trends; firstly a growing return on capital employed (ROCE) and secondly, an increasing amount of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. So, when we ran our eye over Novanta's (NASDAQ:NOVT) trend of ROCE, we liked what we saw. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. For those who don't know, ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business. To calculate this metric for Novanta, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.11 = US$129m ÷ (US$1.4b - US$170m) (Based on the trailing twelve months to March 2025). Therefore, Novanta has an ROCE of 11%. In absolute terms, that's a pretty normal return, and it's somewhat close to the Electronic industry average of 10%. Check out our latest analysis for Novanta Above you can see how the current ROCE for Novanta compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our free analyst report for Novanta . The trend of ROCE doesn't stand out much, but returns on a whole are decent. The company has employed 72% more capital in the last five years, and the returns on that capital have remained stable at 11%. 11% is a pretty standard return, and it provides some comfort knowing that Novanta has consistently earned this amount. Stable returns in this ballpark can be unexciting, but if they can be maintained over the long run, they often provide nice rewards to shareholders. In the end, Novanta has proven its ability to adequately reinvest capital at good rates of return. In light of this, the stock has only gained 15% over the last five years for shareholders who have owned the stock in this period. So to determine if Novanta is a multi-bagger going forward, we'd suggest digging deeper into the company's other fundamentals. If you're still interested in Novanta it's worth checking out our to see if it's trading at an attractive price in other respects. While Novanta isn't earning the highest return, check out this free list of companies that are earning high returns on equity with solid balance sheets. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
15-05-2025
- Business
- Business Wire
Novanta to Present at Baird 2025 Global Consumer, Technology & Services Conference on Wednesday, June 4, 2025
BOSTON--(BUSINESS WIRE)--Novanta Inc. (Nasdaq: NOVT) (the "Company"), a trusted technology partner to medical and advanced technology equipment manufacturers, announced today that Robert Buckley, Chief Financial Officer, is scheduled to present at Baird 2025 Global Consumer, Technology & Services Conference on Wednesday, June 4, 2025, in New York, NY. 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@
