What To Expect From Nova's (NVMI) Q1 Earnings

Semiconductor quality control company Nova (NASDAQ: NVMI) will be reporting results tomorrow before the bell. Here's what to expect.

Nova beat analysts' revenue expectations by 4.8% last quarter, reporting revenues of $134.2 million, down 11.3% year on year. It was a very strong quarter for the company, with an impressive beat of analysts' EPS estimates and a significant improvement in its inventory levels.

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

This quarter, analysts are expecting Nova's revenue to grow 3.4% year on year to $136.7 million, a reversal from the 1.3% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.28 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nova has a history of exceeding Wall Street's expectations, beating revenue estimates every single time over the past two years by 3.1% on average.

Looking at Nova's peers in the semiconductor manufacturing segment, some have already reported their Q1 results, giving us a hint as to what we can expect. FormFactor posted flat year-on-year revenue, beating analysts' expectations by 1.7%, and Amkor reported a revenue decline of 7.2%, in line with consensus estimates. FormFactor traded up 17.6% following the results while Amkor was also up 2.5%.

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

Investors in the semiconductor manufacturing segment have had steady hands going into earnings, with share prices flat over the last month. Nova is up 4.9% during the same time and is heading into earnings with an average analyst price target of $195.8 (compared to the current share price of $183.53).

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