Why Is NOVANTA INC (NOVT) Stock Down Today?

Novanta Inc (NOVT) shares fell 15.26% to $123.71 as the company lowered its full-year earnings outlook following a temporary disruption at its U.K. manufacturing facility. The decline came despite a quarterly revenue beat, with investors focusing on the reduced guidance for fourth-quarter and fiscal year 2026 adjusted earnings per share.

What Happened

Novanta reported third-quarter 2026 revenue of $305 million, a 23% year-over-year increase that exceeded estimates of $301.01 million. Adjusted earnings per share came in at $1.05, surpassing the consensus estimate of $0.97. However, the company cut its fiscal 2026 adjusted EPS guidance to a range of $3.66 to $3.71 from the previous $3.68 to $3.74, with the midpoint now below the prior estimate of $3.69.

The primary driver for the guidance reduction was a slowdown at the Stockport plant in the United Kingdom. This disruption reduced gross margin by approximately 200 basis points in the quarter. Management stated that shipments are expected to resume in the first quarter of 2027. For the fourth quarter, Novanta projected adjusted EPS of $0.91 to $0.96, which is significantly below the consensus estimate of $1.02. The company also raised its fiscal 2026 sales guidance slightly to $1.135 billion to $1.140 billion from $1.130 billion to $1.140 billion. Novanta outlined a 2027 outlook of more than 15% reported growth as it works through the temporary disruption.

What The Data Shows

The stock printed four fresh 52-week lows on November 10, 2026, extending a broader downward trend. Over the last eight sessions, the stock has moved down 15.1% from $145.76 to $123.71. The current price sits near the lower end of its 52-week range, which spans from $98.27 to $176.38. Valuation metrics show a price-to-earnings ratio of 92.3, a beta of 1.70, and a net margin of 6.0%. Total revenue has grown 7.6% on a trailing twelve-month basis. Recent insider activity includes one sale totaling $98,000 by director Thomas N. Secor on September 11, 2026, with no buys recorded in the last 90 days.

What To Watch

Investors will monitor the resumption of shipments from the Stockport plant in the first quarter of 2027 and the company's ability to achieve its 2027 growth target of more than 15%.