Sep 30, 2022

Novanta Q3 2022 Earnings Report

Novanta reported record third-quarter results, with double-digit growth in sales and Adjusted EBITDA, driven by strong customer demand across medical and advanced industrial applications.

Key Takeaways

Novanta Inc. reported a strong third quarter in 2022, with a 26% increase in GAAP revenue to $223 million and a GAAP consolidated net income of $22 million. The company's Adjusted EBITDA reached $49 million, and Adjusted Earnings Per Share increased to $0.81. Despite inflationary pressures, Novanta's teams delivered excellent financial performance, with customer demand remaining strong and backlog at near-record levels.

GAAP Revenue increased 26% to $223 million.

GAAP Consolidated Net Income was $22 million.

GAAP Diluted Earnings Per Share increased 66% to $0.63.

Adjusted Earnings Per Share increased 8% to $0.81.

Total Revenue
$223M
Previous year: $178M
+25.5%
EPS
$0.81
Previous year: $0.75
+8.0%
Adjusted EBITDA
$49.4M
Previous year: $40.4M
+22.3%
Gross Profit
$98.4M
Previous year: $76.3M
+29.0%
Cash and Equivalents
$84.6M
Previous year: $102M
-17.4%
Free Cash Flow
$11.5M
Previous year: $7.78M
+47.5%
Total Assets
$1.21B
Previous year: $1.21B
-0.2%

Novanta

Novanta

Novanta Revenue by Segment

Forward Guidance

For the fourth quarter of 2022, the Company expects GAAP revenue of approximately $215 million to $217 million, demonstrating reported growth of 8% to 9%. The Company expects Adjusted EBITDA to be in the range of $45.0 million to $46.0 million and Adjusted Diluted EPS to be in the range of $0.70 to $0.74. For the full year 2022, the Company expects GAAP revenue of approximately $857 million to $859 million, demonstrating reported growth of 21% to 22%. The Company expects Adjusted EBITDA to be in the range of $183 million to $184 million and Adjusted Diluted EPS to be in the range of $3.02 to $3.06.

Positive Outlook

  • GAAP revenue of approximately $215 million to $217 million, demonstrating reported growth of 8% to 9%.
  • Adjusted EBITDA to be in the range of $45.0 million to $46.0 million
  • Adjusted Diluted EPS to be in the range of $0.70 to $0.74.
  • GAAP revenue of approximately $857 million to $859 million, demonstrating reported growth of 21% to 22%.
  • Adjusted EBITDA to be in the range of $183 million to $184 million

Revenue & Expenses

Visualization of income flow from segment revenue to net income