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Nova Measuring Instruments (NVMI) to Post Q1 Earnings: What's Up?

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Nova Measuring Instruments (NVMI - Free Report) is set to report first-quarter 2022 results on May 12.

The Zacks Consensus Estimate for revenues is pegged at $126 million, indicating an increase of 49.77% 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 50% increase from the year-ago quarter’s 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’ efforts to modify its working model to navigate supply chain disruptions, continued product expansion and steady demand across all its technologies and markets are likely to be reflected in its first-quarter 2022 performance.

In the fourth quarter of 2021, the company reported product revenues of $99.9 million, up 62% year over year, driven by an expanding product portfolio and new logic penetration. The trend is likely to have continued in the first quarter, driven by the growing demand for NOVA products. Product revenues are likely to have been affected by the demand for METRION products introduced in the last quarter.

Nova’s first-quarter performance is also expected to reflect significant growth in its service revenue segments. The upside can be attributed to the significantly higher installed base growth and high portions of professional services and upgrades. In the last reported quarter, service revenues were up 48.5% to $21.6 million.

Earlier this quarter, Nova unveiled a portfolio of multiple advanced solutions uniquely equipped to address the manufacturing challenges of next-gen logic devices, including NOVA PRISM, Nova i570, Nova METRION, NOVA VERAFLEX and Nova ELIPSON. The continuous adoption of the Nova solutions and services across all segments and customers is anticipated to have driven the company’s top line in the to-be-reported quarter.

In 2021, Nova opened a new subsidiary in China. It also expanded its offices in Ireland and the United States following its penetration into a new customer operating in China and meeting capacity expansion targets in 2022.

Keeping in line with its focus, the company further expanded its operating capacities in China in the to-be-reported quarter as part of its strategy to strengthen its global ties, tighten customers’ partnerships and support its continued expansion in the region.

Key Developments in Q1

In January, Nova announced the complete acquisition of ancosys GmbH, headquartered in Germany. The transaction was valued at $90 million, which was paid in cash and included a performance-based earnout of approximately $10 million.

Nova expects the acquisition to be accretive on a non-GAAP basis within 12 months from closing.

Moreover, Nova intends to expand ancosys served markets in 2022 by utilizing its position and resources in the materials metrology segment.

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 #2. 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 have the right combination of elements to post an earnings beat in their upcoming releases:

Cisco Systems (CSCO - Free Report) has an Earnings ESP of +0.84% and a Zacks Rank #2. The company is set to announce third-quarter fiscal 2022 results on May 18. You can see the complete list of today’s Zacks #1 Rank stocks here.

CSCO is down 22.7% in the year-to-date period against the Zacks Computer - Networking industry’s decline of 23.1% and the Computer and Technology sector’s fall of 26.9%.

Analog Devices (ADI - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2. It is all set to report its second-quarter fiscal 2022 results on May 18.

ADI is down 13.4% in the year-to-date period against the Zacks Semiconductor - Analog and Mixed industry’s decline of 21.8% and the Computer and Technology sector’s fall of 26.9%.

Euronav (EURN - Free Report) has an Earnings ESP of +10% and a Zacks Rank #2. The company is set to announce first-quarter 2022 results on May 12.

EURN has returned 16.2% in the year-to-date period compared with the Zacks Transportation - Shipping industry’s rise of 13.8% and the Transportation sector’s fall of 13.6%.

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

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