Q1 2024 Earnings Summary
Reported on May 7, 2024 (Before Market Open)
Pre-Earnings Price$161.14Last close (May 6, 2024)
Post-Earnings Price$158.11Open (May 7, 2024)
Price Change
$-3.03(-1.88%)
- Novanta expects incremental revenue in 2025 of $50 million or more from new product launches, demonstrating confidence in their growth prospects and the diversification of these products across multiple businesses and customers.
- The company is seeing early signs of recovery in the microelectronics business, with bookings improving and some customers gearing up for a better second half, indicating potential growth ahead.
- Novanta is on track with a record number of new product launches, feeling overall good about execution and timing, which is expected to drive growth in the second half of 2024 and beyond.
- Increased operational expenses are expected in the coming quarters, with OpEx projected to rise in the second quarter due to higher R&D spending to ensure new product launches are on schedule, which may impact near-term profitability.
- Potential delays in new product launches owing to customer timing could affect the anticipated ramp-up in the second half of 2024, possibly impacting revenue growth targets. Some products are ahead of schedule, but others are experiencing delays.
- Limited visibility and uncertainty in certain end markets, particularly in the industrial and robotics sectors, with ongoing challenges and difficulty in assessing customer inventory levels, may impact demand and revenue growth. The company is not ready to update full-year guidance due to these uncertainties.
Research analysts covering NOVANTA.