Benzinga | Aug 10, 2021 03:32PM EDT

Novanta Q2 Result Tops Estimates, Raises FY21 Outlook

* Novanta Inc (NASDAQ:NOVT) reported second-quarter FY21 revenue growth of 15.8% year-on-year to $167.5 million, beating the analyst consensus of $164.3 million.

* The revenue reported an 11.4% organic growth.

* Segments and Margins: Photonics revenue grew 30.4% Y/Y to $62.4 million. The non-GAAP gross margin expanded 340 bps to 48.7%.

* Vision revenue declined 2% Y/Y to $63.4 million. The non-GAAP gross margin expanded 60 bps to 40.9%.

* Precision Motion revenue rose 29.6% Y/Y to $41.7 million. The non-GAAP gross margin expanded 750 bps to 51.7%.

* The non-GAAP EBITDA margin expanded 80 bps to 22.1%.

* Adjusted EPS of $0.62 beat the analyst consensus of $0.51.

* Novanta generated $28.7 million in operating cash flow.

* It held $133.9 million in cash and equivalents.

* Outlook: Novanta sees Q3 revenue of $165 million - $170 million above the analyst consensus of $163.2 million.

* The company sees adjusted EPS of $0.55 - $0.60 above the analyst consensus of $0.54.

* Novanta sees FY21 revenue of $660 million - $670 million (prior $645 million - $655 million), above the analyst consensus of $656.7 million.

* It sees an adjusted EPS of $2.30 - $2.40 (prior $2.04 - $2.19) above the analyst consensus of $2.20.

* Price Action: NOVT shares traded higher by 0.60% at $141.75 on the last check Tuesday.