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Dec 31, 2022
Novanta Q4 2022 Earnings Report
Novanta reported strong Q4 2022 financial results, delivering revenue and profit growth despite a challenging operating environment.
Key Takeaways
Novanta Inc. reported a revenue of $218.4 million for Q4 2022, a 9.8% increase compared to Q4 2021. GAAP operating income was $26.8 million, and GAAP net income was $15.3 million. Adjusted Diluted EPS was $0.75, compared to $0.67 in the same quarter last year. The company anticipates continued focus on new product development and driving cash flows in 2023.
GAAP revenue increased by 9.8% to $218.4 million compared to Q4 2021.
Organic revenue growth was 13.8% for the quarter.
GAAP operating income increased to $26.8 million, compared to $21.7 million in Q4 2021.
Adjusted EBITDA was $46.1 million, compared to $42.6 million in Q4 2021.
Novanta
Novanta
Forward Guidance
For the first quarter of 2023, the Company expects GAAP revenue of approximately $210 million to $212 million. The Company expects Adjusted EBITDA to be in the range of $44 million to $45 million and Adjusted Diluted EPS to be in the range of $0.64 to $0.65. For the full year 2023, the Company expects GAAP revenue of approximately $890 million to $915 million. The Company expects Adjusted EBITDA to be in the range of $195 million to $207 million and Adjusted Diluted EPS to be in the range of $3.00 to $3.20.
Positive Outlook
- Sales in medical end markets expected to have solid demand in 2023.
- Strong backlog.
- Resilient customer demand.
- Teams remain disciplined and diligent to serve customers.
- Ability to deliver strong operating performance in the year ahead.
Challenges Ahead
- Some near term slowdown in some areas of the microelectronics end market capital spending.
- Assumes no significant changes in foreign exchange rates.
- Assumes a weighted average interest rate of 6%, and therefore $24 million to $26 million of net interest expense.
- Inherent difficulty in forecasting and quantifying certain amounts that are necessary for reconciliations.
- Potential penalties for violating foreign, U.S. federal, and state healthcare laws and regulations