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Novanta
🇺🇸 NASDAQ:NOVT
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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.

Total Revenue
$218M
Previous year: $199M
+9.8%
EPS
$0.75
Previous year: $0.67
+11.9%
Adjusted EBITDA
$46.1M
Previous year: $42.6M
+8.2%
Gross Profit
$94.5M
Previous year: $82.9M
+14.1%
Cash and Equivalents
$100M
Previous year: $117M
-14.7%
Free Cash Flow
$36.4M
Previous year: $23.5M
+54.7%
Total Assets
$1.24B
Previous year: $1.23B
+1.1%

Novanta

Novanta

Novanta Revenue by Segment

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

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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