Novanta (NASDAQ: NOVT) reported Q2 EPS of $0.42, $0.03 better than the analyst estimate of $0.39. Revenue for the quarter came in at $142.9 million versus the consensus estimate of $141.35 million.

• Third Quarter 2020 GAAP Revenue of $143 million
• Third Quarter 2020 GAAP Net Income of $8 million
• Third Quarter 2020 GAAP Diluted Earnings Per Share of $0.23
• Third Quarter 2020 Adjusted Earnings Per Share of $0.42
• Third Quarter 2020 Adjusted EBITDA of $30 million

“Novanta continues to execute well in the face of the ongoing difficulties caused by the COVID-19 pandemic,” said Matthijs Glastra, Chief Executive Officer of Novanta. “In the third quarter, our revenue and profit did better than we expected, and we delivered record cashflow performance. We are very pleased with the positioning and performance of our portfolio and are investing into the headwinds, focusing on the long-term growth drivers in our business. We continue to put the health and safety of our employees as a priority and are extremely proud of their dedication and commitment to the company and our customers.”

GUIDANCE:

Novanta sees Q3 2020 revenue of $144-149 million, versus the consensus of $149.52 million.

“We are seeing signs of a stronger economic climate, but with a resurgence of the COVID-19 virus occurring globally, we recognize we must remain vigilant and conservative in our planning,” said Matthijs Glastra. “We expect revenue to be up sequentially in the fourth quarter, and we also expect sequential gross margin expansion. In addition, we believe the fourth quarter will demonstrate strong design win momentum on the back of significant investments in innovation and product launches. While the resurgence of the virus is concerning, we are focusing on managing the things we can control.”

For the fourth quarter of 2020, the Company expects GAAP revenue of approximately $144 million to $149 million, and Adjusted EBITDA in the range of $30 million to $32 million. The Company’s Adjusted EBITDA guidance assumes no significant changes in foreign exchange rates.

For earnings history and earnings-related data on Novanta (NOVT) click here.