Shares of Nova Ltd (NASDAQ: NVMI) tumbled 11.40% in pre-market trading on Thursday, despite the company reporting better-than-expected third-quarter results. The significant drop suggests that investors may be focusing on concerns beyond the headline numbers, possibly related to the company's future outlook.
Nova, a leading provider of metrology solutions for semiconductor manufacturing, announced record quarterly revenue of $224.6 million, representing a 25% increase year-over-year and slightly beating analyst estimates. The company's non-GAAP earnings per share came in at $2.16, edging past the consensus estimate of $2.15 and marking a 24.14% improvement from the same period last year.
However, the sharp stock decline indicates that market participants might be reacting negatively to Nova's fourth-quarter guidance or other forward-looking statements. The company projected Q4 revenue between $215 million to $225 million and non-GAAP EPS of $2.02 to $2.20. While Nova's CEO, Gaby Waisman, expressed optimism about 2025 being a record year and anticipated growth continuing into 2026, investors appear to be taking a more cautious stance. The pre-market plunge suggests that the market may have expected even stronger guidance or identified potential headwinds in the semiconductor industry that could impact Nova's future performance.
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