Why Nova Measuring Instruments Ltd. Shares Marched Higher Today

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Nova Measuring Instruments Ltd. (NASDAQ: NVMI  ) jumped more than 10% in Wednesday's early trading, then settled to close up nearly 8% after the company turned in solid first quarter results.

So what: Quarterly revenue rose 26% year over year to a company record $34.7 million, which translated to adjusted net income of $6.9 million, or $0.25 per diluted share. Analysts, on average, were modeling adjusted earnings of only $0.22 per share on sales of $34.19 million.

Now what: Nova President and CEO Eitan Oppenhaim added, "Our recent R&D investments, which were aimed at enhancing and diversifying our products offering, are clearly paying off and have established us as a leader in Optical Metrology for advanced process control."

Investors are right to applaud today's beat, which was strong by any measure as earnings exceeded even the high end of Nova's expectations. With shares currently trading for only 10 times next year's expected earnings, I think the stock could still prove an attractive bet for long-term investors.

It's not hard to measure the potential for this new tech
Nova is a small-cap company with great potential, but it's hardly the only promising tech name out there. To be sure, if you thought the iPod, the iPhone, and the iPad were amazing, just wait until you see this. One hundred of Apple's top engineers are busy building one in a secret lab. And an ABI Research report predicts 485 million of them could be sold over the next decade. But you can invest in it right now, for just a fraction of the price of Apple stock. Click here to get the full story in this eye-opening new report.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2938052, ~/Articles/ArticleHandler.aspx, 8/29/2014 4:24:32 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement