Shares of Novanta (NOVT) tumbled 12.45% in pre-market trading on Tuesday, following the company's first-quarter earnings report and cautionary outlook due to global trade disruptions. The maker of life-sciences equipment warned of potential challenges ahead, despite reporting a rise in Q1 earnings and revenue.

Novanta reported Q1 consolidated net income of $21.2 million, or 59 cents per share, up from $14.7 million, or 41 cents per share, a year earlier. Revenue slightly increased by 1.1% to $233.4 million. However, the company's forward-looking statements have raised concerns among investors.

Chair and CEO Matthijs Glastra highlighted the "limited visibility of rapid trade policy changes" and the "heightened uncertainty caused by global trade disruptions." In response, Novanta announced plans for "cost containment actions" aimed at reducing annual expenses by $20 million. This move is intended to offset the potential impact of shifting trade policies and possible purchase deferrals by customers due to reciprocal tariffs on its products.

Adding to investor worries, Novanta's Q2 guidance came in potentially below market expectations. The company forecasts adjusted earnings of $0.68 to $0.78 per share on revenue between $230 million and $240 million for the second quarter. The cautious outlook, combined with the planned cost-cutting measures, appears to have spooked investors, leading to the significant pre-market decline.