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Nova to Report Q3 Earnings: What's in Store for NVMI Stock?

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Nova Ltd. (NVMI - Free Report) is set to report third-quarter 2024 results on Nov. 7.

For the third quarter of 2024, NVMI expects revenues between $168 million and $176 million. 

The Zacks Consensus Estimate for third-quarter 2024 revenues is pegged at $172.2 million, indicating an increase of 33.7% from the year-ago quarter’s levels.

Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.

For the to-be-reported quarter, Nova expects non-GAAP earnings to be in the range of $1.60-$1.73 per share. 

The consensus mark for earnings has been steady at $1.68 per share in the past 30 days. The figure indicates a 36.59% increase from the year-ago quarter’s reported figure.

Nova Ltd. Price and EPS Surprise

Nova Ltd. Price and EPS Surprise

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

Nova’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 12.37%.

Let’s see how things have shaped up for this announcement.

Factors to Consider

Nova’s expanding geographical presence, increasing customer momentum and technology offering in the dimensional material as well as chemical metrology portfolio are expected to have driven the top line in the to-be-reported quarter. 

NVMI’s flexible operational model and efficient execution in the wafer fab equipment market are expected to be reflected in the third-quarter 2024 results. 

Nova’s top line is expected to have been positively impacted by the growing market for leading-edge nodes, which includes gate-all-around and packaging processes. Nova PRISM 2, Chemical Metrology division, and FinFET advanced nodes process control tools are expected to significantly impact revenues in the to-be-reported quarter. This segment is seeing high demand in Taiwan, Korea and the United States.

NVMI’s Services business increase, attributed to utilization rates to obtain secure contractual and value-added revenues, is expected to have driven customer momentum in the third quarter of 2024.

Adoption of Nova’s VeraFlex XPS platform is expected to have boosted third-quarter revenues. VeraFlex XPS has gained momentum in FinFet and advanced packaging nodes. 40% of total orders were from capacity expansion in this segment, and the trend is expected to have continued in the third quarter of 2024.

However, sluggish momentum in markets like memory and advanced packaging is expected to have hurt NVMI’s top line in the to-be-reported quarter.

What Our Model Says for NVMI

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.

NVMI has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell) at present. 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 worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings this season.

Arista Networks (ANET - Free Report) has an Earnings ESP of +0.72% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here. 

Shares of ANET have surged 68% year to date. ANET is scheduled to release third-quarter fiscal 2024 results on Nov. 7.  

Yelp (YELP - Free Report) has an Earnings ESP of +15.48% and a Zacks Rank #1 at present. 
 
The stock has declined 27.4% year to date. YELP is set to report third-quarter 2024 results on Nov. 7.

Shopify (SHOP - Free Report) has an Earnings ESP of +5.78% and a Zacks Rank #1 at present.

Shares of Shopify have jumped 0.3% year to date. SHOP is set to report third-quarter 2024 results on Nov. 12.


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