https://assets.capyfin.com/instruments/678fdc13234e27009c5d576e.png avatar
Novanta
🇺🇸 NASDAQ:NOVT
View Company
OverviewEarningsDividends
•
Dec 31, 2019

Novanta Q4 2019 Earnings Report

Reported financial results for the fourth quarter and full year 2019.

Key Takeaways

Novanta's Q4 2019 revenue was stronger than expected, with the medical business growing at a double-digit pace and new product revenue reaching record levels, despite challenges in industrial capital spending markets.

GAAP revenue was $159.7 million, a 2.3% increase year-over-year.

GAAP operating income was $13.0 million, compared to $15.7 million in Q4 2018.

Adjusted EBITDA was $30.5 million, compared to $30.8 million in Q4 2018.

Operating cash flow was $35.4 million, compared to $21.9 million in Q4 2018.

Total Revenue
$160M
Previous year: $156M
+2.3%
EPS
$0.55
Previous year: $0.56
-1.8%
Adjusted EBITDA
$30.5M
Previous year: $30.8M
-0.7%
Gross Profit
$66M
Previous year: $64.5M
+2.3%
Cash and Equivalents
$78.9M
Previous year: $82M
-3.8%
Free Cash Flow
$32.6M
Previous year: $18.9M
+72.4%
Total Assets
$870M
Previous year: $720M
+20.9%

Novanta

Novanta

Novanta Revenue by Segment

Forward Guidance

For the first quarter of 2020, the Company expects GAAP revenue of approximately $144 million to $154 million. We estimate that the effects of COVID-19 on our revenue in the first quarter will be approximately $10 million to $15 million. The Company expects Adjusted EBITDA to be in the range of $23 million to $26 million and Adjusted Diluted EPS to be in the range of $0.34 to $0.42.

Positive Outlook

  • Momentum around new products introductions and design win activities.
  • Strong medical end market demand for our products.
  • Expects Adjusted EBITDA to be in the range of $23 million to $26 million.
  • Expects Adjusted Diluted EPS to be in the range of $0.34 to $0.42.
  • Believes this disruption is only temporary and that overall, we remain fundamentally strong and well positioned for growth and success.

Challenges Ahead

  • Expecting short-term disruptions to our business in the first quarter due to the public health epidemic originating in China.
  • Epidemic is expected to have a temporary impact on our sales of products sold directly into China.
  • Epidemic is expected to have a temporary impact on our supply of products sourced from China to feed our global factories.
  • Epidemic is expected to have a temporary impact on our demand from our non-China-based customers due to their dependencies on the Chinese market.
  • The effects of the COVID-19 outbreak represent our view as of today, based on our current expectations regarding the timing of business resumption in our operations, customers, and our Chinese supply chain.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Novanta