How did NVMI's EPS outperform forecasts in Q4 2024?

Nova's (NVMI) EPS outperformed forecasts in Q4 2024 due to several key factors: 1. **Strong Revenue Growth**: Nova reported a record quarterly revenue of $194.8 million for Q4 2024, which was a 9% quarter-over-quarter increase and a 45% year-over-year increase. This significant revenue outperformance exceeded the company's guidance and was driven by strong sales in both its Products and Services segments. 2. **Optimized Inventory Levels and Gross Margin Improvement**: Nova's inventory levels significantly improved, and the company's gross margin enhanced year-on-year. This optimization of operational efficiency contributed to better financial outcomes, enabling Nova to achieve higher EPS. 3. **Beat Analyst Expectations**: Nova consistently beats analyst expectations in both revenue and EPS estimates. For Q4 2024, the company's EPS of $1.58 exceeded the analyst estimate of $1.27. This trend reflects Nova's ability to outperform forecasts due to its robust business model and market positioning. In summary, Nova's EPS outperformance in Q4 2024 can be attributed to strong revenue growth, optimized inventory levels, gross margin improvement, and consistent beat of analyst expectations. These factors collectively contribute to the company's robust financial performance and higher EPS.