Nova Measuring Instruments Ltd (NASDAQ: NVMI) announced its earnings results for the third quarter on March 15, 2024, reporting earnings per share of $2.14. This figure exceeded the consensus estimate of $2.13 by $0.01, demonstrating the semiconductor company’s strong performance in a competitive market.
During the quarter, Nova generated revenue of $222.62 million, surpassing analysts’ expectations of $220.43 million. This represents a 14.3% increase compared to the same period last year, when the company reported earnings per share of $1.94. Nova’s return on equity stood at 24.09%, with a net margin of 28.73%, underscoring its operational efficiency.
Stock Performance and Market Position
Following the earnings announcement, Nova’s stock experienced fluctuations, trading down to $438.16 during Thursday’s trading session, a decrease of $37.68. The trading volume reached 402,459 shares, slightly below its average volume of 436,822. With a market capitalization of $12.88 billion, Nova’s stock has shown considerable growth, having a 52-week high of $507.27 and a low of $153.99. The company’s price-to-earnings (P/E) ratio is 57.30, while the price-to-earnings-growth ratio stands at 2.78.
Nova also provided updated guidance for the first quarter of fiscal year 2026, projecting earnings per share between $2.130 and $2.250. These forecasts reflect the company’s optimistic outlook in an evolving semiconductor market.
Institutional Investment Trends
Institutional investors have been actively engaging with Nova’s stock, indicating a growing interest in the company. For instance, Wasatch Advisors LP increased its holdings by 4.9% in the second quarter, now owning 2,200,948 shares valued at $605.7 million. Similarly, Invesco Ltd. significantly raised its stake by 185.4% in the third quarter, acquiring an additional 394,544 shares.
Other notable institutional movements include Lazard Asset Management LLC, which boosted its holdings by 69.2%, and Nuveen LLC, which grew its position by 1.7%. Currently, institutional investors own 82.99% of Nova’s stock, reflecting strong confidence in the company’s future performance.
Nova Measuring Instruments, founded in 1993 and headquartered in Rehovot, Israel, specializes in developing advanced metrology and process control systems for the semiconductor manufacturing industry. Its products, including spectroscopic ellipsometry and scatterometry tools, play a crucial role in enhancing yield and performance in integrated circuit fabrication.
As the semiconductor industry continues to evolve, Nova’s commitment to innovation and growth positions it favorably among leading foundries and device manufacturers. The company’s recent performance highlights its resilience and strategic direction as it navigates market challenges.
