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NVMI shares have outperformed industry peers, including Broadcom (AVGO - Free Report) , Marvell Technology (MRVL - Free Report) and SkyWater Technology (SKYT - Free Report) . Over the same period, shares of Broadcom, Marvell Technology and SkyWater Technology have declined 12.6%, 34.7% and 48.3%, respectively.
The rise in the share price is driven by NVMI's consistently strong performance over the past few quarters. Revenue growth has benefited from strong sales of the VeraFlex, Elipson and Metrion platforms.
NVMI’s Impressive Financial Performance
Nova has a long history of reporting strong quarterly results, with earnings surpassing the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 9.29%.
In the fourth quarter of 2024, the company’s earnings of $1.94 per share jumped 43% year over year and beat the consensus mark by 6.59%. Total revenues rallied 45% to $194.8 million, driven by record sales of materials metrology solutions and increasing adoption across market segments.
Revenues from advanced packaging processes more than doubled, contributing 15% to product revenues, indicating strong market demand and successful strategic focus.
Nova maintained a robust cash position, with $820 million in cash and equivalents as of Dec. 31, 2024, providing financial flexibility for future investments and operations.
Strong Metrology Portfolio Powers Nova’s Success
NVMI offers a comprehensive metrology portfolio designed to address the intricate demands of semiconductor manufacturing. The company’s solutions encompass dimensional, materials and chemical metrology, ensuring precise process control across various fabrication stages.
Nova's Optical Critical Dimension (“OCD”) platforms deliver high-resolution measurements crucial for monitoring semiconductor device dimensions. In fourth-quarter 2024, OCD solutions saw increased market share, driven by strong demand from multiple customers due to their high productivity, precision and unique capabilities. The Nova PRISM platform, in particular, achieved high double-digit year-over-year sales growth, securing multiple engagements across both front-end and advanced packaging applications.
In December 2024, NVMI expanded its dimensional metrology capabilities by acquiring Sentronics Metrology GmbH. Sentronics specializes in modular dimensional metrology technology, enabling Nova to diversify its offerings in advanced wafer-level packaging and specialty devices. This acquisition broadens NVMI's reach into applications beyond standard 300mm silicon wafers, enhancing its presence in both back-end and front-end fabrication processes.
Nova's Materials Metrology portfolio, including VeraFlex, Elipson and Metrion, achieved record quarterly and annual results. The Metrion platform was adopted by a leading global memory customer for advanced DRAM R&D, and high-volume DRAM and NAND manufacturing.
NVMI's Chemical Metrology Solutions, including Nova AncoScene, Nova Acnolyzer and Nova DMR, provide precise chemical composition analysis essential for semiconductor manufacturing. Rising revenues from advanced packaging highlight its growing importance. In January 2025, Nova expanded its capacity by opening a manufacturing and R&D facility in Bad Urach, Germany, strengthening its chemical metrology capabilities.
NVMI’s Q1 Outlook Looks Optimistic
Nova's first-quarter 2025 guidance includes the impacts of its recent acquisition and reflects confidence in sustained growth and market expansion. The acquisition strengthens NVMI's metrology portfolio, enhances its capabilities and broadens its customer base, positioning the company for continued revenue growth and increased market share.
For the first quarter of 2025, NVMI expects revenues of $205-$215 million. Non-GAAP earnings are expected between $2.00 and $2.16 per share.
The Zacks Consensus Estimate for revenues is pegged at $210.40 million, indicating a year-over-year rise of 48.4%.
The consensus mark for earnings is pegged at $2.08 per share, which has moved up 14.9% in the past 30 days. The estimate indicates 49.6% growth from the figure reported in the year-ago quarter.
Image: Bigstock
Here is Why NVMI is a Must-Buy Stock for Growth-Focused Investors
Nova Ltd. (NVMI - Free Report) shares have appreciated 11.3% year to date, outperforming the Zacks Computer & Technology sector’s 8.2% decline and the Zacks Electronics - Semiconductors industry’s 12.3% drop.
NVMI shares have outperformed industry peers, including Broadcom (AVGO - Free Report) , Marvell Technology (MRVL - Free Report) and SkyWater Technology (SKYT - Free Report) . Over the same period, shares of Broadcom, Marvell Technology and SkyWater Technology have declined 12.6%, 34.7% and 48.3%, respectively.
The rise in the share price is driven by NVMI's consistently strong performance over the past few quarters. Revenue growth has benefited from strong sales of the VeraFlex, Elipson and Metrion platforms.
NVMI’s Impressive Financial Performance
Nova has a long history of reporting strong quarterly results, with earnings surpassing the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 9.29%.
Nova Ltd. Price and Consensus
Nova Ltd. price-consensus-chart | Nova Ltd. Quote
In the fourth quarter of 2024, the company’s earnings of $1.94 per share jumped 43% year over year and beat the consensus mark by 6.59%. Total revenues rallied 45% to $194.8 million, driven by record sales of materials metrology solutions and increasing adoption across market segments.
Revenues from advanced packaging processes more than doubled, contributing 15% to product revenues, indicating strong market demand and successful strategic focus.
Nova maintained a robust cash position, with $820 million in cash and equivalents as of Dec. 31, 2024, providing financial flexibility for future investments and operations.
Strong Metrology Portfolio Powers Nova’s Success
NVMI offers a comprehensive metrology portfolio designed to address the intricate demands of semiconductor manufacturing. The company’s solutions encompass dimensional, materials and chemical metrology, ensuring precise process control across various fabrication stages.
Nova's Optical Critical Dimension (“OCD”) platforms deliver high-resolution measurements crucial for monitoring semiconductor device dimensions. In fourth-quarter 2024, OCD solutions saw increased market share, driven by strong demand from multiple customers due to their high productivity, precision and unique capabilities. The Nova PRISM platform, in particular, achieved high double-digit year-over-year sales growth, securing multiple engagements across both front-end and advanced packaging applications.
In December 2024, NVMI expanded its dimensional metrology capabilities by acquiring Sentronics Metrology GmbH. Sentronics specializes in modular dimensional metrology technology, enabling Nova to diversify its offerings in advanced wafer-level packaging and specialty devices. This acquisition broadens NVMI's reach into applications beyond standard 300mm silicon wafers, enhancing its presence in both back-end and front-end fabrication processes.
Nova's Materials Metrology portfolio, including VeraFlex, Elipson and Metrion, achieved record quarterly and annual results. The Metrion platform was adopted by a leading global memory customer for advanced DRAM R&D, and high-volume DRAM and NAND manufacturing.
NVMI's Chemical Metrology Solutions, including Nova AncoScene, Nova Acnolyzer and Nova DMR, provide precise chemical composition analysis essential for semiconductor manufacturing. Rising revenues from advanced packaging highlight its growing importance. In January 2025, Nova expanded its capacity by opening a manufacturing and R&D facility in Bad Urach, Germany, strengthening its chemical metrology capabilities.
NVMI’s Q1 Outlook Looks Optimistic
Nova's first-quarter 2025 guidance includes the impacts of its recent acquisition and reflects confidence in sustained growth and market expansion. The acquisition strengthens NVMI's metrology portfolio, enhances its capabilities and broadens its customer base, positioning the company for continued revenue growth and increased market share.
For the first quarter of 2025, NVMI expects revenues of $205-$215 million. Non-GAAP earnings are expected between $2.00 and $2.16 per share.
The Zacks Consensus Estimate for revenues is pegged at $210.40 million, indicating a year-over-year rise of 48.4%.
The consensus mark for earnings is pegged at $2.08 per share, which has moved up 14.9% in the past 30 days. The estimate indicates 49.6% growth from the figure reported in the year-ago quarter.
Zacks Rank
NVMI currently flaunts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.