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Nova (NVMI) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
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Nova Measuring Instruments (NVMI - Free Report) reported first-quarter 2022 adjusted earnings of $1.30 per share, which surpassed the Zacks Consensus Estimate by 23.8%. The figure surged 85.7% on a year-over-year basis.
Revenues of $133.9 million rose 59.2% on a year-over-year basis, exceeding the guidance of $132 million. The figure beat the Zacks Consensus Estimate for revenues by 6.32%.
While the three big semiconductor territories, China, Taiwan and Korea, continue to be the primary source of the company’s revenues, Europe and the United States are gaining momentum in light of several government programs to establish independency.
Product revenues (82% of total revenues) surged 65.8% year over year to $109.9 million.
Product revenue distribution was approximately 65% from logic and foundry and approximately 35% from memory. Product revenues came from five customers who contributed 10% or more each, one of them being IBM.
During the quarter, the company continued to integrate ancosys as a division into Nova, developing a strong pipeline of products and opportunities in both the front-end and back-end semiconductor processes. The demand for Nova’s solutions across dimensional, materials and chemical applications, continues to be strong.
Service revenues (18% of total revenues) increased 34.7% year over year to $24 million.
Research & development (R&D) expenses rose 31.8% to $19.1 million. Sales & marketing (S&M) expenses rose 28.4% year over year to $12.2 million. Moreover, general & administrative (G&A) expenses increased 71.1% to $6.1 million.
In first-quarter 2022, non-GAAP gross profit rose 64.7% year over year to $79.6 million. The gross margin expanded 200 basis points (bps) to 59.5%.
On a non-GAAP basis, operating income was $46.5 million, up 106.3% year over year. Non-GAAP operating margin expanded 790 bps from the year-ago quarter to 34.7%.
Balance Sheet & Cash Flow
As of Mar 31, 2022, Nova had cash and cash equivalents of $105.1 million compared with $126.6 million in the previous quarter.
Net cash provided by operating activities was $12.9 million, down 60.9% year over year.
Guidance
For second-quarter 2022, revenues are anticipated to be between $133 million and $141 million. Non-GAAP net earnings per share are expected between $1.09 and $1.23.
At the midpoint of second-quarter guidance, the company anticipates gross margins to be approximately 58% on a non-GAAP basis.
Zacks Rank & Other Key Picks
Nova Measuring Instruments currently carries a Zacks Rank #2 (Buy). Shares of Nova have increased 9.7% in the past year.
The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.
Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have increased 10.7% in the past year.
The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past seven days. For 2022, ACLS' earnings estimates have moved 11 cents north to $4.10 per share in the past seven days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 23.5%. Shares of ACLS have surged 49.5% in the past year.
The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised 4 cents upward to $2.12 per share over the past 60 days. For fiscal 2022, earnings estimates have moved 11 cents north to $8.43 per share in the past 60 days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have risen 4.1% in the past year.
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Nova (NVMI) Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Nova Measuring Instruments (NVMI - Free Report) reported first-quarter 2022 adjusted earnings of $1.30 per share, which surpassed the Zacks Consensus Estimate by 23.8%. The figure surged 85.7% on a year-over-year basis.
Revenues of $133.9 million rose 59.2% on a year-over-year basis, exceeding the guidance of $132 million. The figure beat the Zacks Consensus Estimate for revenues by 6.32%.
While the three big semiconductor territories, China, Taiwan and Korea, continue to be the primary source of the company’s revenues, Europe and the United States are gaining momentum in light of several government programs to establish independency.
Nova Ltd. Price, Consensus and EPS Surprise
Nova Ltd. price-consensus-eps-surprise-chart | Nova Ltd. Quote
Quarter Details
Product revenues (82% of total revenues) surged 65.8% year over year to $109.9 million.
Product revenue distribution was approximately 65% from logic and foundry and approximately 35% from memory. Product revenues came from five customers who contributed 10% or more each, one of them being IBM.
During the quarter, the company continued to integrate ancosys as a division into Nova, developing a strong pipeline of products and opportunities in both the front-end and back-end semiconductor processes. The demand for Nova’s solutions across dimensional, materials and chemical applications, continues to be strong.
Service revenues (18% of total revenues) increased 34.7% year over year to $24 million.
Research & development (R&D) expenses rose 31.8% to $19.1 million. Sales & marketing (S&M) expenses rose 28.4% year over year to $12.2 million. Moreover, general & administrative (G&A) expenses increased 71.1% to $6.1 million.
In first-quarter 2022, non-GAAP gross profit rose 64.7% year over year to $79.6 million. The gross margin expanded 200 basis points (bps) to 59.5%.
On a non-GAAP basis, operating income was $46.5 million, up 106.3% year over year. Non-GAAP operating margin expanded 790 bps from the year-ago quarter to 34.7%.
Balance Sheet & Cash Flow
As of Mar 31, 2022, Nova had cash and cash equivalents of $105.1 million compared with $126.6 million in the previous quarter.
Net cash provided by operating activities was $12.9 million, down 60.9% year over year.
Guidance
For second-quarter 2022, revenues are anticipated to be between $133 million and $141 million. Non-GAAP net earnings per share are expected between $1.09 and $1.23.
At the midpoint of second-quarter guidance, the company anticipates gross margins to be approximately 58% on a non-GAAP basis.
Zacks Rank & Other Key Picks
Nova Measuring Instruments currently carries a Zacks Rank #2 (Buy). Shares of Nova have increased 9.7% in the past year.
Some other top-ranked stocks from the broader Computer and Technology sector are Avnet (AVT - Free Report) , Axcelis Technologies (ACLS - Free Report) and Analog Devices (ADI - Free Report) . While Avnet sports a Zacks Rank #1 (Strong Buy), Axcelis and Analog Devices carry a Zacks Rank of #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Avnet's fourth-quarter fiscal 2022 earnings has been revised 55 cents northward to $1.96 per share over the past 30 days. For 2022, earnings estimates have moved 20.5% north to $6.83 per share in the past 30 days.
Avnet's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 21.2%. Shares of AVT have increased 10.7% in the past year.
The Zacks Consensus Estimate for Axcelis' second-quarter 2022 earnings has been revised 3 cents upward to 99 cents per share over the past seven days. For 2022, ACLS' earnings estimates have moved 11 cents north to $4.10 per share in the past seven days.
Axcelis' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 23.5%. Shares of ACLS have surged 49.5% in the past year.
The Zacks Consensus Estimate for Analog Devices' second-quarter fiscal 2022 earnings has been revised 4 cents upward to $2.12 per share over the past 60 days. For fiscal 2022, earnings estimates have moved 11 cents north to $8.43 per share in the past 60 days.
Analog Devices' earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 6%. Shares of ADI have risen 4.1% in the past year.