Sep 27, 2024

Novanta Q3 2024 Earnings Report

Novanta's Q3 2024 earnings demonstrated strong performance, driven by diversified business and strategic initiatives.

Key Takeaways

Novanta reported a 10.3% increase in GAAP revenue to $244.4 million for Q3 2024. The company's adjusted EPS was $0.85, and adjusted EBITDA reached $57 million. Customer bookings increased 13% year-over-year for core businesses, and minimally invasive surgery products achieved a book-to-bill ratio of 1.4.

GAAP revenue reached $244.4 million, a 10.3% increase year-over-year.

GAAP net income was $19 million, with a diluted EPS of $0.53.

Adjusted EBITDA was $57 million, compared to $52.2 million in the prior year.

Customer bookings increased 13% year-over-year for core businesses.

Total Revenue
$244M
Previous year: $222M
+10.3%
EPS
$0.85
Previous year: $0.85
+0.0%
Adjusted EBITDA
$57M
Previous year: $52.2M
+9.2%
Gross Profit
$109M
Previous year: $102M
+7.5%
Cash and Equivalents
$92.7M
Previous year: $76M
+22.0%
Free Cash Flow
$19.5M
Previous year: $37.9M
-48.5%
Total Assets
$1.42B
Previous year: $1.19B
+18.8%

Novanta

Novanta

Forward Guidance

For Q4 2024, Novanta expects GAAP revenue of approximately $237 million to $242 million, an adjusted gross profit margin of approximately 46.0%, adjusted EBITDA in the range of $50 million to $52 million, and adjusted diluted EPS in the range of $0.70 to $0.74.

Positive Outlook

  • Expects GAAP revenue of approximately $237 million to $242 million.
  • Anticipates adjusted gross profit margin to be approximately 46.0%.
  • Projects adjusted EBITDA to be in the range of $50 million to $52 million.
  • Forecasts adjusted diluted EPS to be in the range of $0.70 to $0.74.
  • Expects organic revenue growth of up to 10% in 2025 compared to 2024.

Challenges Ahead

  • Macroeconomic environment created challenging dynamics with the timing of capital equipment purchases.
  • Guidance assumes no significant changes in foreign exchange rates.
  • Difficult to forecast and quantify certain amounts for GAAP reconciliations.
  • Potential impact from acquisitions and related expenses.
  • Possible effects from restructuring expenses.