Nova Ltd. (NVMI) research, news, and more from GeoInvesting

Company description

Wed, 30 Dec 2009 05:00:00 GMT

Nova Measuring Instruments Ltd. develops, produces and markets advanced integrated and stand alone metrology solutions for the semiconductor manufacturing industry.

Comments & Business Outlook

Wed, 02 Aug 2017 15:22:36 GMT

NVMI ($23.75, marked up to $24.34 pre-market) - Reported second quarter results this morning:

Record quarterly revenue of $56.1 million, up 58% year-over-year, above the high end of guidance of $52 million to $56 million
GAAP net income of $13.3 million, or $0.47 per diluted share, up 327% year-over-year on a per-share basis, exceeding guidance of $0.32 to $0.39 per share
Non-GAAP net income of $15.2 million, or $0.53 per diluted share, up 212% year-over-year on a per-share basis, exceeding guidance of $0.38 to $0.46 per share
Diversified customer mix, including five 10%-plus customers
Record quarterly revenue from Integrated Metrology solutions, including record Integrated Metrology revenue from Memory customers

You can read the company’s comprehensive results in this morning’s press release.

Research

Mon, 05 Jun 2017 19:44:15 GMT

**Mock Portfolio 4.0 Update

On Friday we closed out $NVMI from our Buy on Pullback Mock Portfolio 4.0. We issued the following tweet:

We have now closed out UCTT and NVMI from our Mock 4.0 portfolio with final returns of 26.8% and 71.6% respectively. $OPCO and $ZAGG are the remaining two stocks on the screen which are currently up 23.0% and 28.3% respectively since being added to the portfolio in March 2017.

Research

Tue, 09 May 2017 16:33:18 GMT

**Mock Portfolio 4.0 Update

NVMI ($19.22; marked up 9%) announced Q1 2017 results:

Sales of $54.4 million vs $34.1 million and ahead of analyst estimates of $52.3 million
Non-GAAP EPS of $0.50 vs non-GAAP EPS of $0.16 in the prior year and ahead of analyst estimates of $0.41
Q2 2017 sales guidance of $52 to $56 million ahead of analyst estimates of $48.5 million . Q2 2017 non-GAAP EPS guidance of $0.38 to $0.46 and ahead of analyst estimates of $0.33.

Quotes from management:

"Nova continued to perform well this quarter, setting new business and financial records that demonstrate our growing competitive strength across the market segments we serve," commented Eitan Oppenhaim, President and Chief Executive Officer of Nova. "Growing demand for our unique value proposition, which is becoming a key enabler for our customers' transition to the most advanced products, enabled us to achieve these outstanding milestones. Nova's solid start for the year, along with the second quarter guidance, supports our outlook for another strong year, in which we continue to effectively execute the Company's growth plans and expand our position within leading edge customers."

NVMI was the first stock we added to Mock Portfolio 4.0 on February 14, 2017. The company designs, develops, produces, and sells process control systems used in the manufacture of semiconductors in Israel.

Research

Wed, 15 Feb 2017 16:40:06 GMT

**Mock Portfolio 4.0

In early 2016, we introduced our first “Buy on Pullback” Mock Portfolio. We stated:

“We are constantly on the search for company stock prices that react negatively or have muted reaction to good news. These type of overreactions or under reactions are often the result of market gyrations or the inability of investors to digest the full scope of a particular event.”

We introduced our first “Buy on Pullback” Mock Portfolio on January 19, 2016 in the midst of the market correction that negatively affected quality stocks, pushing them to prices that were attractive to us. At the end of May 2016, we constructed our “Buy on Pullback”Mock Portfolio 2.0. These mock portfolios returned an average of 35.6% and 31.8% at their peaks, respectively.

Our “Buy on Pullback” Mock Portfolio 3.0 from October 4, 2016 is still playing out. In our February 7, 2017 email we issued a “Buy on Pullback” Mock Portfolio 3.0 update and stated we would begin looking for stocks to construct our next Mock Portfolio 4.0.

Yesterday, we tweeted the following:

As for many of the stocks in our previous mock portfolios, muted or negative reactions to bullish news are some of the key factors that we look for when selecting stocks for the list. In yesterday morning’s email, we stated that “NVMI has a history of having muted reactions to bullish news. We plan to possibly buy shares at current levels but be more aggressive on pullbacks.”

Not surprisingly, shares were weak in response to strong Q4 earnings, falling as much as 4% at one point during yesterday’s trading session. We presume some momentum investors were spooked by management’s comment in the earnings call regarding limited visibility at this point in time for the second half of 2017 and 2018. This is standard protocol for NVMI, so we think this comment will not a be factor in the near-term.

We highlighted NVMI’s strong Q4 2016 results in yesterday’s email. We stated we thought shares could eventually exceed $20 in the near term as analysts would likely need to raise estimates. Well, this morning consensus analyst estimates were raised for fiscal 2017 and 2018:

2017 - EPS estimate of $1.21 on sales of $194.8 million up from $1.14 and $184.1 million
2018 - EPS estimate of $1.54 on sales of $220 million up from $1.21 (Did not have prior 2018 revenue estimate)

While analysts have upped estimates as we anticipated, we believe their assumptions are based on 18% net margins which we feel is a bit low giving the company has reported the following net margins:

Full year 2016 of 18.4%
Q4 2016 23.3%
Q3 2016 21.0%
Mid-point guidance for Q1 2017 is 22%

Assuming Q1 2017 comes in around the range of guidance given, that will mark 3 straight quarters of 20%+ net margins. This, coupled with commentary from the conference call about margins improving, leads us to believe that using 20% as a baseline is a realistic assumption. From the company’s conference call:

“Encouraged by our financial and business results in 2016 we introduced at the beginning of 2017 a new strategic plan introducing a new target of $300 million in revenues and further growth in operating margins.”

Using 20% net margins on analyst estimates of $194.8 would equate to full year 2017 non-GAAP EPS of $1.40. We will continue to dig into the margin picture, but it seems that analysts may be using a worst case scenario margin outlook for 2017 estimates.

We will continue to monitor earnings releases and look to add names to round out our “Buy on Pullback” Mock Portfolio 4.0.

Research

Tue, 14 Feb 2017 16:48:49 GMT

NVMI ($15.94) reported Q4 2016 financial results: (note: NVMI had pre-announced sales data)

Sales of $50.2 million vs $40.0 million in the prior year in line with analyst estimates of $49.8
Non-GAAP EPS of $0.42 vs $0.19 in the prior year and ahead of analyst estimates of $0.39

Management on growth:

"We believe that the strong end to 2016 sets us on course for another growth year in 2017, bolstered by growing demand for our entire product portfolio, combining dimensions and materials metrology solutions. The strength of our business, as evidenced by our strong guidance for the first quarter, will continue into 2017 as we continue to secure wins from multiple customers in various industry segments."

Mr. Oppenhaim continued, "Nova's broad offering, which is embraced by our diversified customer base, allows us today to address a wider range of challenges that generate more opportunities for us to grow in 2017. During our continued growth, we have leveraged our proven business model to drive record profits, as evidenced by the significant increase in full-year non-GAAP net income. We expect to continue to benefit from our efficient business model in the coming years, leading to continued profitable growth."

Q1 2017 guidance:

Sales of $50 to $54 million (analyst estimates are for $48.5 million)
Non-GAAP EPS of $0.37 to $0.45 (analyst estimates are for $0.32)

We recently stated that we believe analyst full year 2017 EPS estimates appear to be low if Q3 2016 margins are referenced. We calculated that EPS would be $1.37 at 2017 revenue estimates of $184.1 million. If we annualized Q1 non-GAAP EPS guidance, 2017 EPS would equate to $1.48 to $1.80 per share, well ahead of our estimate. As a reminder, NVMI is benefitting from actions its customers are taking to upgrade equipment to meet to new technology demands, a trend that should continue for the next year and a half. We think NVMI shares should eventually exceed $20 in the near term. We expect 2017 analyst EPS estimates and price targets to be raised. NVMI has a history of having muted reactions to bullish news. We plan to possibly buy shares at current levels but be more aggressive on pullbacks.

Comments & Business Outlook

Thu, 26 Jan 2017 16:29:57 GMT

REHOVOT, Israel, Jan. 26, 2017 /PRNewswire/ -- Nova Measuring Instruments (Nasdaq: NVMI), a leading innovator and a key provider of metrology solutions for advanced process control used in semiconductor manufacturing, today announced that due to additional customer orders received and delivered during the fourth quarter of 2016, management expects fourth quarter revenue to be approximately $50 million, exceeding previously announced guidance of $42 million to $46 million. With these record quarterly revenue results, the company expect to post record yearly revenue of approximately $163 million.

Research

Mon, 09 Jan 2017 17:03:48 GMT

NVMI ($14.15) received over $10 million in orders from multiple foundry customers. The company expects the orders to support expectations for the 4th consecutive record revenue year and expand growth momentum into 2017. Some quotes from the release:

"The growing demand for our XPS solutions is evident by these multiple orders, which increase our confidence in the attractiveness of our unique portfolio, combining materials and thickness measurements for the most advanced wafer fabrications steps," commented Eitan Oppenhaim, President and Chief Executive Officer of Nova. "Our solid and established OCD position in the Foundry segment supported the recent XPS penetration efforts in multiple leading customers, which materialized with these new orders. We expect additional cross-selling opportunities across all of our product lines as we move forward in 2017, validating our strong strategic position in the marketplace."

With these final orders in 2016 we expect the fourth quarter to be a very strong conclusion to another record year, reflecting the demand we experience for our entire portfolio of solutions, including XPS and OCD," continued Mr. Oppenhaim. "Based on the recent booking stream in the fourth quarter, we enter 2017 with growing momentum and increased confidence in our continued growth."

Contract Awards

Mon, 05 Dec 2016 16:48:48 GMT

NVMI ($13.11) announced it has received multiple orders from leading 3D-NAND manufacturers. Recent wins are expected to contribute revenues of more than $20 million in 2017.

Research

Wed, 30 Nov 2016 17:26:36 GMT

NVMI ($12.68) - Benchmark initiated coverage on NVMI with a “Buy” rating and $18.50 price target. We recently highlighted NVMI’s strong Q3 2016 results and stated we felt the conference call was very bullish. We had a good call with management a few weeks ago, and are now looking to see if the fiscal 2017 analyst EPS estimates of $1.06 ( on healthy revenue growth) are taxed since 2016 EPS estimates currently only stand at $1.02. One aspect we like about the story is that the industry NVMI reside in is going through a major technological transformation, which bodes wells for the company’s new product line created to meet new demands. It's worth noting that the company has beaten analyst EPS estimates for the last 4 quarters with big beats the last two quarters.

Research

Thu, 03 Nov 2016 17:57:00 GMT

NVMI ($12.28) - Yesterday we highlighted NVMI’s strong Q3 2016 results. The Company reported Q3 2016 non-GAAP EPS of $0.35 vs $0.25 in the prior year and ahead of analyst estimates of $0.25. The company’s Q4 2016 EPS guidance of $0.31 to $0.40 is also well ahead of analyst estimates of $0.24. We are surprised shares did not react, the stock actually closed down 1.5%. We participated in the NVMI conference call which we felt was bullish. Management stated that 2017 should be a growth year for the company but was not specific.

Contract Awards

Tue, 08 Apr 2014 04:00:00 GMT

REHOVOT, Israel, April 8, 2014 /PRNewswire/ -- Nova Measuring Instruments Ltd. (NASDAQ: NVMI), a leading innovator and a key provider of optical metrology solutions for advanced process control used in semiconductor manufacturing, announced today that multiple leading edge customers have placed multimillion orders for its newly introduced software solutions. The orders include Nova's Hybrid Metrology and Fleet Management software solutions for high volume production at the most advanced 2X and 1X technology nodes.

Nova's Hybrid Metrology solution is part of Nova's holistic approach to utilize multiple sources of information to enhance the overall metrology performance for better process control. The Hybrid Metrology solution combines data from a range of metrology tools with Nova's own metrology measurements to provide improved performance.

Nova's Fleet Management software is Nova's advanced solution for managing large fleets of metrology tools. It is designed to address the needs of metrology and process engineers in the fab, enabling high productivity and efficiency across a large fleet of metrology tools.

Both solutions were qualified following intensive technical evaluations during the last few months with leading customers and in multiple sites.

"We are very excited to receive these initial orders for our new advanced software solutions," said Eitan Oppenhaim, President and CEO of Nova. "These orders are clear evidence that our strategic decision to invest in these proprietary software solutions, which are based on our leading edge modeling engines, was the right one in order to enhance the metrology performance required in the most advanced technology nodes. We expect additional orders of our software solutions from these and other customers throughout the year. Our leadership in the Hybrid Metrology, which we have demonstrated in concept over the past several years in multiple publications and technical papers, can now been seen in our leading edge customers' sites, with active deployments underway to support their complex challenges and high volume production efforts."

Contract Awards

Thu, 09 Jan 2014 05:00:00 GMT

REHOVOT, Israel, January 9, 2014 /PRNewswire/ --

Nova Measuring Instruments Ltd. (NASDAQ: NVMI) provider of leading edge stand-alone metrology and the market leader of integrated metrology solutions to the semiconductor process control market, announced today that several foundries have recently placed over $20 million in orders in aggregate for Nova's metrology solutions. The orders are for the most advanced 2Xnm and 1Xnm technology nodes in multiple process steps.

The orders include Nova's most advanced fleet of integrated and stand-alone metrology products, the latest generation of NovaMARS^® modeling software and Nova's Fleet Management software solution. These solutions will support multiple process steps including both CMP and Etch. Nova expects to ship these systems over the first half of 2014.

"We are very proud with the vote of confidence we continuously receive from the market leading Foundries for our metrology solutions", said Eitan Oppenhaim, Nova's President & CEO. "These recent selections validate our strategy of increased R&D spending on advanced optical solutions in order to increase market share in this high growth market, and solidify our position as a leader in Optical CD metrology for process control. Today, we are growing our placement in the foundries beyond the CMP process into multiple steps including Etch, for both front-end and back-end applications, and in the future, we expect these wins to generate significant business opportunities for us. With these new orders and our recent market share gains in multiple front and back-end applications, we are clearly demonstrating our strength in the process control segment, which positions us at a good starting point towards 2014."

Oppenhaim continued, "In addition, we are pleased to announce that we expect our fourth quarter of 2013 results to fall in the higher range of our guidance initially issued on October 30, 2013 with our third quarter of 2013 results. We will provide additional details on our formal reporting in February 2014."

As a reminder, Eitan Oppenhaim, President and CEO, will present at the 16th Annual Needham Growth Conference at The New York Palace Hotel, New York, NY. Mr. Oppenhaim's presentation will be at 12:45p Eastern Time on Wednesday, January 15, 2014. A live webcast of Nova's presentation will be available to the public and can be accessed at http://wsw.com/webcast/needham64/NVMI.

Comments & Business Outlook

Thu, 06 May 2010 04:00:00 GMT

"During the first quarter, we reached record quarterly shipment levels and again achieved solid financial performance, through our strong position in new industry expansion projects and through our ability to provide additional functionality and value to our existing products", commented Gabi Seligsohn, President and CEO of Nova. "In addition, our service business regained momentum, and presented 19% increase in revenues and improved gross margins".

"Semiconductor business fundamentals continue to be strong at the high end of technology and our leading edge customers have indicated that demand is expected to continue to be robust throughout the year. Given the pace of technology transition, several customers are actively evaluating our new stand alone products, and we believe these evaluations lay the foundation for additional business growth in the future and for further improvement of our competitive position in our core markets".

"The memory side of the business is performing better than it did three months ago. In addition, we currently have better visibility on new fab build-outs and expansions, and we believe we are very well positioned to address these opportunities. Based on these developments, we think it is appropriate to raise our guidance for the year".

The company's revised revenue guidance for 2010 is $61-$66 million. Based on this revenue guidance, the company is also guiding to net profitability of 13%-17% for 2010.

Research

Wed, 30 Dec 2009 05:00:00 GMT

The GeoTeam will track the Nova Measuring Instruments story and cod it as a GeoSpecial on the Radar due to the following commentary:

REHOVOT, Israel, December 21 /PRNewswire-FirstCall/ -- Nova Measuring Instruments Ltd. (Nasdaq: NVMI), provider of leading edge stand alone metrology and the market leader of integrated metrology solutions to the semiconductor process control market, today announced that it has recently received $10 million of new bookings, which together with previously announced orders in the quarter, are expected to set an all time record of quarterly bookings for the company. The orders during the quarter were received from several customers for stand-alone optical CD, integrated metrology and software products. Most of these orders are scheduled for delivery in the first quarter of 2010.

"Our recent market share gains and penetration to new customers, combined with the swift recovery in industry spending patterns, are expected to result in a very strong finish for the year, in terms of revenues, profitability and year-end backlog," commented Gabi Seligsohn, President & CEO of Nova. "In light of the improving economic conditions and key customer decisions to significantly increase tool orders to support capacity build up, we believe that 2010 will be a year of significant growth for the company."

Source: PrNewswire (December 21, 2009)