By Rob Curran

Novanta shares fell sharply after the maker of life-sciences equipment warned of a cost-cutting push to offset a likely blow to sales from tariffs, illustrating challenges to exporters posed by the trade war.

The Bedford, Mass., company logged earnings of $21.2 million, or 59 cents a share, up from $14.7 million, or 41 cents a share, a year earlier.

First-quarter revenue rose 1.1% to $233.4 million.

For the second quarter, the company targeted adjusted earnings of 68 cents-to-78 cents a share on revenue in a range between $230 million and $240 million.

"Due to the limited visibility of rapid trade policy changes, and the heightened uncertainty caused by the global trade disruptions, we are in an environment that makes long-term revenue predictions challenging beyond the second quarter," said Chair and Chief Executive Matthijs Glastra, in a statement.

To offset the impact of shifting trade policy, and potential purchase deferrals by customers due to reciprocal tariffs on its products, the company plans "cost containment actions," with a view to reducing costs by $20 million a year.

Shares fell 12% to $105.01 premarket.

Write to Rob Curran at rob.curran@wsj.com

(END) Dow Jones Newswires

May 06, 2025 08:38 ET (12:38 GMT)

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