Company Overview - Novanta (NOVT) shares increased by 8.3% to $128.65 in the last trading session, with a notable trading volume, and have gained 15.6% over the past four weeks [1] - The company is experiencing strong growth in advanced surgery, robotics automation, and new product launches in high-growth markets [1] Earnings Expectations - Novanta is expected to report quarterly earnings of $0.81 per share, reflecting a year-over-year decline of 4.7%, with revenues projected at $245.75 million, a slight increase of 0.6% from the previous year [2] - The consensus EPS estimate for Novanta has remained unchanged over the last 30 days, indicating a lack of upward revisions which typically correlate with stock price movements [3] Industry Context - Novanta is part of the Zacks Electronics - Miscellaneous Components industry, where American Superconductor (AMSC) also operates, having seen a 5.4% increase in its last trading session [3] - AMSC's consensus EPS estimate for its upcoming report is $0.15, representing a significant decline of 44.4% from the previous year, and it also holds a Zacks Rank of 3 (Hold) [4]

Company Performance - Novanta reported quarterly earnings of $0.76 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, and showing an increase from $0.73 per share a year ago, representing an earnings surprise of +2.70% [1] - The company posted revenues of $241.05 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.68% and increasing from $235.86 million year-over-year [2] - Over the last four quarters, Novanta has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Future Outlook - The sustainability of Novanta's stock price movement will depend on management's commentary during the earnings call and the company's earnings outlook [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.96 on revenues of $259.39 million, and for the current fiscal year, it is $3.44 on revenues of $989.7 million [7] - The estimate revisions trend for Novanta was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Electronics - Miscellaneous Components industry, to which Novanta belongs, is currently in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Group 1 - Novanta reported quarterly earnings of $0.74 per share, exceeding the Zacks Consensus Estimate of $0.68 per share, with an earnings surprise of 8.82% [1] - The company posted revenues of $233.37 million for the quarter ended March 2025, slightly missing the Zacks Consensus Estimate by 0.28%, compared to $230.92 million in the same quarter last year [2] - Over the last four quarters, Novanta has surpassed consensus EPS estimates three times and topped consensus revenue estimates two times [2] Group 2 - The stock has underperformed, losing about 21.4% since the beginning of the year, while the S&P 500 has declined by 3.9% [3] - The current consensus EPS estimate for the upcoming quarter is $0.76 on revenues of $240.56 million, and for the current fiscal year, it is $3.48 on $1 billion in revenues [7] - The Zacks Industry Rank for Electronics - Miscellaneous Components is in the bottom 45% of over 250 Zacks industries, indicating potential challenges for stock performance [8]