Nordson Corporation’s (NDSN - Free Report) fourth-quarter fiscal 2023 (ended Oct 31, 2023) adjusted earnings (excluding 24 cents from non-recurring items) of $2.46 per share surpassed the Zacks Consensus Estimate of $2.40 per share. The bottom line increased 0.8% year over year.
Revenue Details
In the reported quarter, Nordson’s revenues were $719.3 million, increasing 5.2% from the year-ago fiscal quarter’s number due to solid momentum in the Industrial Precision Solutions segment. Revenues beat the Zacks Consensus Estimate of $707 million.
Organic sales declined 3.1% due to softness in electronics dispense and biopharma product lines. Acquisitions/divestitures had a positive impact of 6.9% while foreign currency translation had a positive impact of 1.4%.
On a regional basis, revenues from the Asia Pacific region increased 2.4% to $219.4 million. Revenues generated from Europe increased 11.2% to $184.3 million while the metric in the Americas increased 3.9% to $315.6 million.
Nordson started reporting revenues under three segments effective Aug 1, 2022. The segments are Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions. A brief snapshot of the segmental sales is provided below:
Revenues from Industrial Precision Solutions amounted to $405.4 million in the quarter under review, up 14% from the year-ago fiscal quarter’s level. The segment contributed 56.4% to NDSN’s top line in the quarter.
Organic sales increased 4.4% from the year-ago fiscal quarter’s level. Foreign currency translation had a positive impact of 2.4%.
Revenues from Medical and Fluid Solutions amounted to $168.6 million in the quarter under review, down 7% from the year-ago fiscal quarter’s level. The segment contributed 23.4% to NDSN’s top line in the reported quarter.
Organic sales decreased 7.6% from the year-ago fiscal quarter’s level.
Advanced Technology Solutions’ sales were $145.2 million, down 0.9% from the year-ago fiscal quarter’s figure. The metric represented 20.2% of Nordson’s revenues in the period.
Organic sales decreased 16.4% from the year-ago fiscal quarter’s level. Acquisitions/divestitures had a positive impact of 15% while foreign currency translation had a positive impact of 0.5%.
Margin Profile
In the reported quarter, Nordson’s cost of sales increased 4.6% from the year-ago fiscal quarter’s level to $335.2 million. Gross profit was $384.1 million, up 5.8% from the year-ago fiscal quarter’s level. The gross margin increased 30 basis points to 53.4%.
Selling and administrative expenses increased 7.3% year over year to $199.1 million. Adjusted EBITDA was $227.1 million, the margin being 32%. The adjusted operating income in the reported quarter was $195.8 million, increasing 10.3% year on year. The adjusted operating margin of 27% increased 100 bps from the year-ago period.
Net interest expenses totaled $25.9 million, reflecting a 408.8% increase from the year-ago fiscal quarter’s level.
Balance Sheet & Cash Flow
At the time of exiting fiscal 2023, Nordson’s cash and cash equivalents were $115.7 million compared with $163.5 million recorded at the end of the fourth quarter of fiscal 2022. Long-term debt was $1,621.4 million compared with $345.3 million recorded at the end of the fourth quarter of fiscal 2022.
In fiscal 2023, NDSN generated net cash of $641.3 million from operating activities, up 25% from the last fiscal year’s tally. Capital invested in purchasing property, plant and equipment totaled $34.6 million, decreasing 32.8% from the year-ago fiscal period.
Dividends & Share Buyback
In fiscal 2023, Nordson paid out dividends amounting to $150.4 million, up 19.4% from $125.9 million in the same period of the previous fiscal year.
Nordson’s treasury purchase shares amounted to $89.7 million in fiscal 2023, decreasing from $262.9 million in the last fiscal year.
Fiscal 2024 Outlook
For fiscal 2024 (ending October 2024), Nordson anticipates adjusted earnings to increase 1-8% from the year-ago period. Sales are expected to increase 4-9% from the previous fiscal year’s reported number.
Zacks Rank & Stocks to Consider
Nordson currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector are discussed below:
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 27.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings has increased 3.1%. The stock has risen 38.4% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 13.9%.
The consensus estimate for AIT’s fiscal 2024 earnings has increased 3.3% in the past 60 days. Shares of Applied Industrial have jumped 40.9% in the past year.
A. O. Smith Corporation (AOS - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14%.
In the past 60 days, the consensus estimate for A. O. Smith’s 2023 earnings has improved 4.4%. The stock has risen 43.8% in the past year.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Nordson Corporation’s (NDSN - Free Report) fourth-quarter fiscal 2023 (ended Oct 31, 2023) adjusted earnings (excluding 24 cents from non-recurring items) of $2.46 per share surpassed the Zacks Consensus Estimate of $2.40 per share. The bottom line increased 0.8% year over year.
Revenue Details
In the reported quarter, Nordson’s revenues were $719.3 million, increasing 5.2% from the year-ago fiscal quarter’s number due to solid momentum in the Industrial Precision Solutions segment. Revenues beat the Zacks Consensus Estimate of $707 million.
Organic sales declined 3.1% due to softness in electronics dispense and biopharma product lines. Acquisitions/divestitures had a positive impact of 6.9% while foreign currency translation had a positive impact of 1.4%.
On a regional basis, revenues from the Asia Pacific region increased 2.4% to $219.4 million. Revenues generated from Europe increased 11.2% to $184.3 million while the metric in the Americas increased 3.9% to $315.6 million.
Nordson started reporting revenues under three segments effective Aug 1, 2022. The segments are Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions. A brief snapshot of the segmental sales is provided below:
Revenues from Industrial Precision Solutions amounted to $405.4 million in the quarter under review, up 14% from the year-ago fiscal quarter’s level. The segment contributed 56.4% to NDSN’s top line in the quarter.
Organic sales increased 4.4% from the year-ago fiscal quarter’s level. Foreign currency translation had a positive impact of 2.4%.
Revenues from Medical and Fluid Solutions amounted to $168.6 million in the quarter under review, down 7% from the year-ago fiscal quarter’s level. The segment contributed 23.4% to NDSN’s top line in the reported quarter.
Organic sales decreased 7.6% from the year-ago fiscal quarter’s level.
Advanced Technology Solutions’ sales were $145.2 million, down 0.9% from the year-ago fiscal quarter’s figure. The metric represented 20.2% of Nordson’s revenues in the period.
Organic sales decreased 16.4% from the year-ago fiscal quarter’s level. Acquisitions/divestitures had a positive impact of 15% while foreign currency translation had a positive impact of 0.5%.
Margin Profile
In the reported quarter, Nordson’s cost of sales increased 4.6% from the year-ago fiscal quarter’s level to $335.2 million. Gross profit was $384.1 million, up 5.8% from the year-ago fiscal quarter’s level. The gross margin increased 30 basis points to 53.4%.
Selling and administrative expenses increased 7.3% year over year to $199.1 million. Adjusted EBITDA was $227.1 million, the margin being 32%. The adjusted operating income in the reported quarter was $195.8 million, increasing 10.3% year on year. The adjusted operating margin of 27% increased 100 bps from the year-ago period.
Net interest expenses totaled $25.9 million, reflecting a 408.8% increase from the year-ago fiscal quarter’s level.
Balance Sheet & Cash Flow
At the time of exiting fiscal 2023, Nordson’s cash and cash equivalents were $115.7 million compared with $163.5 million recorded at the end of the fourth quarter of fiscal 2022. Long-term debt was $1,621.4 million compared with $345.3 million recorded at the end of the fourth quarter of fiscal 2022.
In fiscal 2023, NDSN generated net cash of $641.3 million from operating activities, up 25% from the last fiscal year’s tally. Capital invested in purchasing property, plant and equipment totaled $34.6 million, decreasing 32.8% from the year-ago fiscal period.
Dividends & Share Buyback
In fiscal 2023, Nordson paid out dividends amounting to $150.4 million, up 19.4% from $125.9 million in the same period of the previous fiscal year.
Nordson’s treasury purchase shares amounted to $89.7 million in fiscal 2023, decreasing from $262.9 million in the last fiscal year.
Fiscal 2024 Outlook
For fiscal 2024 (ending October 2024), Nordson anticipates adjusted earnings to increase 1-8% from the year-ago period. Sales are expected to increase 4-9% from the previous fiscal year’s reported number.
Zacks Rank & Stocks to Consider
Nordson currently carries a Zacks Rank #3 (Hold). Some better-ranked companies from the Industrial Products sector are discussed below:
Flowserve Corporation (FLS - Free Report) presently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
FLS delivered a trailing four-quarter average earnings surprise of 27.3%. In the past 60 days, the Zacks Consensus Estimate for Flowserve’s 2023 earnings has increased 3.1%. The stock has risen 38.4% in the past year.
Applied Industrial Technologies, Inc. (AIT - Free Report) presently carries a Zacks Rank of 2. It has a trailing four-quarter average earnings surprise of 13.9%.
The consensus estimate for AIT’s fiscal 2024 earnings has increased 3.3% in the past 60 days. Shares of Applied Industrial have jumped 40.9% in the past year.
A. O. Smith Corporation (AOS - Free Report) currently carries a Zacks Rank of 2. The company delivered a trailing four-quarter average earnings surprise of 14%.
In the past 60 days, the consensus estimate for A. O. Smith’s 2023 earnings has improved 4.4%. The stock has risen 43.8% in the past year.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Get the latest research report on AOS - FREE
Get the latest research report on FLS - FREE
Get the latest research report on AIT - FREE
Get the latest research report on NDSN - FREE