Novanta (NOVT) Tops Q2 Earnings and Revenue Estimates

Core Insights - Novanta (NOVT) reported quarterly earnings of $0.73 per share, exceeding the Zacks Consensus Estimate of$0.69 per share, but down from $0.80 per share a year ago, resulting in an earnings surprise of 5.80$235.86 million for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 1.09% and showing an increase from $229.46 million year-over-year [2] - Novanta has outperformed consensus EPS estimates three times in the last four quarters and has also topped revenue estimates three times during the same period [2] Earnings Outlook - The future performance of Novanta's stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is$0.89 on revenues of $253.05 million, and for the current fiscal year, it is$3.26 on revenues of $982.22 million [7] Industry Context - The Electronics - Miscellaneous Components industry, to which Novanta belongs, is currently ranked in the bottom 31% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - The performance of Novanta's stock may also be influenced by the overall outlook for the industry, as historical data shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by more than 2 to 1 [8]