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What's in Store for Nova Measuring Instruments (NVMI) Q4 Earnings?

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Nova Measuring Instruments (NVMI - Free Report) is set to report fourth-quarter 2021 results on Feb 24.

The Zacks Consensus Estimate for revenues is pegged at $118.4 million, indicating an increase of 55.18% from the year-ago quarter’s levels.

For the quarter, the Zacks Consensus Estimate for earnings has been steady at $1.05 per share in the past 30 days. The figure indicates a 90.91% increase from the year-ago reported figure.

Let’s see how things have shaped prior to this announcement.

Nova Ltd. Price and EPS Surprise


Nova Ltd. Price and EPS Surprise

Nova Ltd. price-eps-surprise | Nova Ltd. Quote


Factors to Consider

Nova Measuring Instruments’ fourth-quarter performance is expected to reflect strong growth in revenues driven by an expanding product portfolio and new logic penetration.

The company is anticipated to witness a rise in product revenues in the to-be-reported quarter, driven by the robust demand for NOVA products across all main product line, including revenues from the new product line introduced in the last two years.

In December, Nova announced the launch of Nova METRION, the latest addition to its material metrology portfolio. The launch of the solution targets the process control of 3D logic and memory semiconductor devices. The technology enables advanced materials profile measurements by bringing secondary ion mass spectrometry (SIMS) into semiconductor production lines. Following multiple tool installations, the company is anticipated to have recognized revenues from this product in the to-be-reported quarter.

The company is also expected to witness an increase in services revenues in the to-be-reported quarter due to an increase in the systems installed base in recent years.

Since its launch in 2021, the latest generation of the VERAFLEX platform is gaining traction across customers and segments. Nova’s VERAFLEX IV was recently selected by a leading multinational logic manufacturer to upgrade its next-generation IC development.

Moreover, Nova PRISM platform was selected by a top integrated circuits (IC) manufacturer for the latter’s 3D NAND advanced nodes. The continuous adoption of the Nova PRISM standalone platform across all segments and customers is anticipated to have driven the company’s top line in the to-be-reported quarter.

Key Developments in Q4

On Nov 16, Nova entered into a definitive agreement to acquire GmbH — a privately-held company headquartered in Pliezhausen, Germany — in an all-cash transaction valued at $100 million. The amount also includes a performance-based earnout of $10 million. The company recently closed the acquisition in January 2022.

This strategic transaction expands the company’s available markets and allows it to offer advanced solutions to additional processes in semiconductor manufacturing

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Nova Measuring Instruments has an Earnings ESP of 0.00% and carries a Zacks Rank #3, currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these also have the right combination of elements to post an earnings beat in their upcoming releases:

Model N (MODN - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

MODN is down 15.9% in the past year against the Zacks Internet - Software industry’s decline of 31.1% and the Computer and Technology sector’s fall of 14% in the past year.

NVIDIA (NVDA - Free Report) has an Earnings ESP of +3.48% and a Zacks Rank #2.

NVDA is down 19.6% in the past year compared with the Zacks Semiconductor – General industry’s plunge of 16.8% and the Computer and Technology sector’s fall of 14%.

Zscaler (ZS - Free Report) has an Earnings ESP of +3.60% and a Zacks Rank #2.

ZS is down 20.6% in the past year compared with the Zacks Electronics - Parts Distribution industry’s decline of 12.2% and the Computer and Technology sector’s fall of 14%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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Model N, Inc. (MODN) - free report >>

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