Novanta (NASDAQ:NOVT) Updates FY 2025 Earnings Guidance

Novanta (NASDAQ:NOVT) updated its FY 2025 earnings guidance on Monday. The company provided earnings per share guidance of 3.240-3.300 for the period, compared to the consensus earnings per share estimate of 3.270. The company issued revenue guidance of $975.0 million-$979.0 million, compared to the consensus revenue estimate of $975.8 million. Novanta also updated its Q4 2025 guidance to 0.870-0.930 EPS.

Analyst Upgrades and Downgrades

A number of equities analysts have recently weighed in on NOVT shares. Wall Street Zen downgraded Novanta from a “buy” rating to a “hold” rating in a report on Monday, August 11th. Weiss Ratings downgraded Novanta from a “hold (c-)” rating to a “sell (d+)” rating in a report on Saturday, October 25th. Zacks Research upgraded Novanta from a “strong sell” rating to a “hold” rating in a report on Monday, October 6th. Finally, Robert W. Baird dropped their target price on Novanta from $139.00 to $133.00 and set a “neutral” rating on the stock in a report on Monday, August 11th. Two equities research analysts have rated the stock with a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has an average rating of “Reduce” and an average price target of $133.00.

Novanta Stock Performance

NOVT stock traded up $8.85 during midday trading on Monday, hitting $135.86. 909,123 shares of the company traded hands, compared to its average volume of 319,087. Novanta has a twelve month low of $98.76 and a twelve month high of $184.11. The company has a quick ratio of 1.62, a current ratio of 2.54 and a debt-to-equity ratio of 0.57. The business has a 50 day simple moving average of $112.72 and a 200-day simple moving average of $119.71. The stock has a market capitalization of $4.89 billion, a price-to-earnings ratio of 79.92 and a beta of 1.49.

Novanta (NASDAQ:NOVT) last announced its quarterly earnings results on Monday, November 3rd. The technology company reported $0.87 EPS for the quarter, beating the consensus estimate of $0.81 by $0.06. Novanta had a return on equity of 14.70% and a net margin of 6.41%.During the same quarter in the prior year, the firm earned $0.85 EPS. The business’s quarterly revenue was up 1.4% on a year-over-year basis. Novanta has set its FY 2025 guidance at 3.240-3.300 EPS. Q4 2025 guidance at 0.870-0.930 EPS. As a group, equities research analysts predict that Novanta will post 3.03 earnings per share for the current year.

Novanta declared that its Board of Directors has approved a stock repurchase plan on Thursday, September 18th that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the technology company to reacquire up to 4.9% of its stock through open market purchases. Stock buyback plans are usually an indication that the company’s leadership believes its stock is undervalued.

Institutional Investors Weigh In On Novanta

Hedge funds have recently modified their holdings of the business. Osaic Holdings Inc. boosted its position in shares of Novanta by 471.7% in the second quarter. Osaic Holdings Inc. now owns 2,893 shares of the technology company’s stock valued at $371,000 after acquiring an additional 2,387 shares during the period. Captrust Financial Advisors boosted its position in shares of Novanta by 30.7% in the second quarter. Captrust Financial Advisors now owns 3,191 shares of the technology company’s stock valued at $411,000 after acquiring an additional 750 shares during the period. Lazard Asset Management LLC bought a new stake in shares of Novanta in the second quarter valued at approximately $443,000. First Trust Advisors LP bought a new stake in shares of Novanta in the second quarter valued at approximately $528,000. Finally, AQR Capital Management LLC boosted its position in shares of Novanta by 78.9% in the first quarter. AQR Capital Management LLC now owns 4,231 shares of the technology company’s stock valued at $537,000 after acquiring an additional 1,866 shares during the period. 98.35% of the stock is owned by institutional investors.

Novanta Company Profile

Novanta, Inc engages in the provision of core technology solutions to healthcare and advanced industrial original equipment manufacturers. It operates through the following segments: Photonics, Vision, and Precision Motion. The Photonics segment designs, manufactures, and markets photonics-based solutions, including laser scanning and laser beam delivery, CO2 laser, continuous wave and ultrafast laser, and optical light engine products.