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Nordson (NDSN) Beats on Q4 Earnings & Revenues; Rise Y/Y
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Nordson Corporation (NDSN - Free Report) reported better-than-expected results for fourth-quarter fiscal 2016 (ended Oct 31, 2016). The company’s adjusted earnings of $1.39 per share comfortably surpassed the Zacks Consensus Estimate of $1.23. Also, the bottom line came in above the year-ago tally of 95 cents.
Over the last 30 days, the Zacks Rank #4 (Sell) stock yielded negative return of 2.8%, as against 2.7% growth recorded by the Zacks categorized Machinery General Industrial industry. We believe exposure to near-term headwinds led to the stock’s poor ranking and share price performance.
However, we believe impressive results for the fourth quarter (reported after market closed on Dec 13) might drive positive sentiments toward the stock, leading to improvements in estimates and share price performance.
For fiscal 2016, Nordson Corporation’s adjusted earnings came in at $4.68 per share, above $3.57 reported in fiscal 2015.
Revenues
In the quarter, Nordson Corporation generated revenues of $509.3 million, increasing 14.1% year over year. The top-line improvement was driven by 13.7% growth in volumes and 0.4% positive impact of currency translation. Also, the top line surpassed the Zacks Consensus Estimate of $482.3 million.
Backlog was $274 million, up 20% year over year. Orders for the 12-week period ended Dec 4, increased 17% year over year.
Nordson Corporation reports its top-line results under three segments, namely, Adhesive dispensing systems, Advanced technology systems and Industrial coating systems. A brief discussion on the segmental performance is provided below:
The Adhesive dispensing systems segment generated revenues of $234.3 million, up 3.2% year over year. The Advanced technology systems segments’ revenues totaled approximately $194.5, up 32.1% year over year. Revenues generated from the Industrial coating systems segment increased 11.7% to $80.4 million.
On a regional basis, revenues sourced from the U.S. increased 7% year over year. Businesses in Japan, Asia Pacific and Europe also improved, recording revenue increase of 23.6%, 40.4% and 1%, respectively. However, top-line performance in the Americas was weak, with revenues decreasing 3.6% year over year.
For fiscal 2016, Nordson Corporation’s revenue totaled $1,809 million, up 8.5% from the previous year.
Margins
In the quarter, Nordson Corporation’s cost of sales increased 10.9% year over year, representing 46% of total revenue versus 47.4% in the year-ago quarter. Selling and administrative expenses, as a percentage of total revenue, was 32.2% compared with 35.7% in the year-ago quarter. Operating profits increased 46.6% year over year, while the margins came in at 21.8%.
Balance Sheet & Cash Flow
Exiting the fourth quarter, Nordson Corporation had cash and marketable securities of $67.2 million, higher than $60.3 million recorded in the preceding quarter. The company’s long-term debt was $944.6 million, down from $1,026.6 million at previous-quarter end.
In the reported quarter, its net cash generation from operating activities surged 46.5% year over year to $136.4 million. Capital spent on addition of property, plant and equipment totaled $15.4 million, up from $13.2 million recorded a year ago.
During fiscal 2016, the company returned approximately $32 million and $56 million to its shareholders through share buyback and dividend payments, respectively.
Outlook
For first-quarter fiscal 2017, Nordson Corporation anticipates sales to increase in the range of 4−8%. Organic growth is predicted within 6−10%, while the company expects 2% negative impact from adverse foreign currency movements. Operating margin will likely be 18%.
GAAP earnings are expected in the range of 74−84 cents per share.
Nordson Corporation has a market capitalization of $6 billion. Some better-ranked stocks in the machinery industry include Enersys Inc. (ENS - Free Report) , II-VI Incorporated and Applied Industrial Technologies, Inc. (AIT - Free Report) . While Enersys and II-VI Incorporated sport a Zacks Rank #1 (Strong Buy), Applied Industrial Technologies carries a Zacks Rank #2 (Buy). You can seethe complete list of today’s Zacks #1 Rank stocks here.
Enersys Inc’s earnings estimates for fiscal 2017 improved over the last 60 days. It has an average positive earnings surprise of 3.01% for the trailing four quarters.
II-VI Incorporated reported better-than-expected results in the last four quarters, with a positive average earnings surprise of 39.80%. Also, bottom-line expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Applied Industrial Technologies’ earnings estimates for fiscal 2017 and fiscal 2018 have been revised upward, over the last 60 days. Average earnings surprise for the last four quarters is a positive 4.93%.
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Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>
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Nordson (NDSN) Beats on Q4 Earnings & Revenues; Rise Y/Y
Nordson Corporation (NDSN - Free Report) reported better-than-expected results for fourth-quarter fiscal 2016 (ended Oct 31, 2016). The company’s adjusted earnings of $1.39 per share comfortably surpassed the Zacks Consensus Estimate of $1.23. Also, the bottom line came in above the year-ago tally of 95 cents.
Over the last 30 days, the Zacks Rank #4 (Sell) stock yielded negative return of 2.8%, as against 2.7% growth recorded by the Zacks categorized Machinery General Industrial industry. We believe exposure to near-term headwinds led to the stock’s poor ranking and share price performance.
However, we believe impressive results for the fourth quarter (reported after market closed on Dec 13) might drive positive sentiments toward the stock, leading to improvements in estimates and share price performance.
For fiscal 2016, Nordson Corporation’s adjusted earnings came in at $4.68 per share, above $3.57 reported in fiscal 2015.
Revenues
In the quarter, Nordson Corporation generated revenues of $509.3 million, increasing 14.1% year over year. The top-line improvement was driven by 13.7% growth in volumes and 0.4% positive impact of currency translation. Also, the top line surpassed the Zacks Consensus Estimate of $482.3 million.
Backlog was $274 million, up 20% year over year. Orders for the 12-week period ended Dec 4, increased 17% year over year.
Nordson Corporation reports its top-line results under three segments, namely, Adhesive dispensing systems, Advanced technology systems and Industrial coating systems. A brief discussion on the segmental performance is provided below:
The Adhesive dispensing systems segment generated revenues of $234.3 million, up 3.2% year over year. The Advanced technology systems segments’ revenues totaled approximately $194.5, up 32.1% year over year. Revenues generated from the Industrial coating systems segment increased 11.7% to $80.4 million.
On a regional basis, revenues sourced from the U.S. increased 7% year over year. Businesses in Japan, Asia Pacific and Europe also improved, recording revenue increase of 23.6%, 40.4% and 1%, respectively. However, top-line performance in the Americas was weak, with revenues decreasing 3.6% year over year.
For fiscal 2016, Nordson Corporation’s revenue totaled $1,809 million, up 8.5% from the previous year.
Margins
In the quarter, Nordson Corporation’s cost of sales increased 10.9% year over year, representing 46% of total revenue versus 47.4% in the year-ago quarter. Selling and administrative expenses, as a percentage of total revenue, was 32.2% compared with 35.7% in the year-ago quarter. Operating profits increased 46.6% year over year, while the margins came in at 21.8%.
Balance Sheet & Cash Flow
Exiting the fourth quarter, Nordson Corporation had cash and marketable securities of $67.2 million, higher than $60.3 million recorded in the preceding quarter. The company’s long-term debt was $944.6 million, down from $1,026.6 million at previous-quarter end.
In the reported quarter, its net cash generation from operating activities surged 46.5% year over year to $136.4 million. Capital spent on addition of property, plant and equipment totaled $15.4 million, up from $13.2 million recorded a year ago.
During fiscal 2016, the company returned approximately $32 million and $56 million to its shareholders through share buyback and dividend payments, respectively.
Outlook
For first-quarter fiscal 2017, Nordson Corporation anticipates sales to increase in the range of 4−8%. Organic growth is predicted within 6−10%, while the company expects 2% negative impact from adverse foreign currency movements. Operating margin will likely be 18%.
GAAP earnings are expected in the range of 74−84 cents per share.
NORDSON CORP Price and Consensus
NORDSON CORP Price and Consensus | NORDSON CORP Quote
Stocks to Consider
Nordson Corporation has a market capitalization of $6 billion. Some better-ranked stocks in the machinery industry include Enersys Inc. (ENS - Free Report) , II-VI Incorporated and Applied Industrial Technologies, Inc. (AIT - Free Report) . While Enersys and II-VI Incorporated sport a Zacks Rank #1 (Strong Buy), Applied Industrial Technologies carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Enersys Inc’s earnings estimates for fiscal 2017 improved over the last 60 days. It has an average positive earnings surprise of 3.01% for the trailing four quarters.
II-VI Incorporated reported better-than-expected results in the last four quarters, with a positive average earnings surprise of 39.80%. Also, bottom-line expectations for fiscal 2017 and fiscal 2018 improved over the past 60 days.
Applied Industrial Technologies’ earnings estimates for fiscal 2017 and fiscal 2018 have been revised upward, over the last 60 days. Average earnings surprise for the last four quarters is a positive 4.93%.
The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>