Semiconductor quality control company Nova (NASDAQ: NVMI) will be reporting earnings this Thursday before market open. Here’s what you need to know.
Nova beat analysts’ revenue expectations last quarter, reporting revenues of $222.6 million, up 14.3% year on year. It was a satisfactory quarter for the company, with a decent beat of analysts’ adjusted operating income estimates but an increase in its inventory levels.
Is Nova a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Nova’s revenue to grow 6.6% year on year, slowing from the 50.5% increase it recorded in the same quarter last year.
The majority of analysts covering the company have 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.
Looking at Nova’s peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kulicke and Soffa delivered year-on-year revenue growth of 49.8%, beating analysts’ expectations by 5.5%, and Amtech reported revenues up 31.4%, topping estimates by 5%. Kulicke and Soffa traded up 4.7% following the results while Amtech was also up 18.1%.
Read our full analysis of Kulicke and Soffa’s results here and Amtech’s results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 29.7% on average over the last month. Nova is down 3.7% during the same time and is heading into earnings with an average analyst price target of $497.25 (compared to the current share price of $488.32).
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