Earnings To Watch: Nova (NVMI) Reports Q4 Results Tomorrow

Semiconductor quality control company Nova (NASDAQ: NVMI) will be reporting earnings tomorrow morning. Here's what to look for.

Last quarter Nova reported revenues of $128.8 million, down 10.5% year on year, beating analyst revenue expectations by 4.6%. It was a strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates.

Is Nova buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Nova's revenue to decline 15.3% year on year to $128 million, a deceleration on the 24.5% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.24 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 2.9%.

Looking at Nova's peers in the semiconductor manufacturing segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. FormFactor delivered top-line growth of 1.3% year on year, beating analyst estimates by 1.7% and Entegris reported revenue decline of 14.1% year on year, exceeding estimates by 4%. FormFactor traded down 2.3% on the results, and Entegris was up 2.3%.

Read our full analysis of FormFactor's results here and Entegris's results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 4.7% over the last month. Nova is up 13.3% during the same time, and is heading into the earnings with analyst price target of $147.5, compared to share price of $151.3.

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