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Nordson Corporation (NDSN - Free Report) reported better-than-expected first quarter of fiscal 2021 (ended Jan 31, 2021) results. Quarterly earnings and sales surpassed the Zacks Consensus Estimate by 24.5% and 3.5%, respectively.
Adjusted earnings, excluding one-time charges and gains, in the reported quarter were $1.32 per share, surpassing the consensus estimate of $1.06. The bottom line increased 48% from the year-ago figure of 89 cents owing to growth in sales.
Revenue Details
In the reported quarter, Nordson’s net sales were $527 million, up 6% year over year. The top line benefited from a 3% improvement in organic volumes, and a positive impact of 3% positive impact of foreign currency translation and acquisitions. Notably, the top line surpassed the Zacks Consensus Estimate of $509 million.
At the end of the reported quarter, backlog was $495 million.
On a regional basis, revenues from the United States fell 1.7% year over year to $185.3 million. Revenues generated from operations in Japan dropped 1.6% to $27.1 million, while that from the Asia Pacific region increased 17.7% to $142.8 million. Revenues generated from Europe rose 6.9% to $135.2 million and that in the Americas increased 16.3% to $36.1 million.
The company reports under Industrial Precision Solutions and Advanced Technology Solutions. A brief discussion on the segmental performance in the quarter under review is provided below:
The Industrial Precision Solutions segment’s revenues totaled $288.4 million, up 9.3% year over year. The segment gained from a 6% rise in volumes and 3% positive impact of foreign currency translation.
Advanced Technology Solutions’ revenues were $238.2 million, up 3% year over year. The increase was backed by the positive impact of 2% from acquisitions and 2% positive impact of foreign currency translation, partially offset by a 1% decline in volumes.
Margin Profile
In the fiscal first quarter, Nordson’s cost of sales increased 2% to $236.6 million on a year-over-year basis. It represented 44.9% of net sales in the quarter compared with 46.8% in the year-ago quarter. Selling and administrative expenses contracted 3.8% to $180.9 million. It represented 34.4% of net sales in the reported quarter compared with 38% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter were $135 million, up 26.2%.
Adjusted operating profits increased 39% to $109 million, while the margin came in at 20.7% compared with 15.8% in the year-ago quarter.
Balance Sheet & Cash Flow
Exiting the fiscal first quarter, Nordson’s cash and cash equivalents were $225.7 million, up from $208.3 million at the end of the previous quarter. The company’s long-term debt declined 8.1% sequentially to $981.3 million.
In first three months of fiscal 2021, the company generated net cash of $143.3 million from operating activities, reflecting a year-over-year increase of 23.2%. Capital spent on the addition of property, plant and equipment fell 43.2% to $7.9 million.
During first three months of fiscal 2021, the company used $5.3 million to buy back shares and pay out dividends amounting to $22.7 million.
Outlook
For fiscal 2021 (ending January 2022), Nordson anticipates adjusted earnings growth of 15-22% on a year-over-year basis. For the fiscal year, the company expects year-over-year sales growth of 4-6%.
Nordson Corporation Price, Consensus and EPS Surprise
iRobot has a trailing four-quarter earnings surprise of 228.19%, on average.
Franklin Electric has a trailing four-quarter earnings surprise of 19.15%, on average.
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Nordson (NDSN) Q1 Earnings & Revenues Surpass Estimates
Nordson Corporation (NDSN - Free Report) reported better-than-expected first quarter of fiscal 2021 (ended Jan 31, 2021) results. Quarterly earnings and sales surpassed the Zacks Consensus Estimate by 24.5% and 3.5%, respectively.
Adjusted earnings, excluding one-time charges and gains, in the reported quarter were $1.32 per share, surpassing the consensus estimate of $1.06. The bottom line increased 48% from the year-ago figure of 89 cents owing to growth in sales.
Revenue Details
In the reported quarter, Nordson’s net sales were $527 million, up 6% year over year. The top line benefited from a 3% improvement in organic volumes, and a positive impact of 3% positive impact of foreign currency translation and acquisitions. Notably, the top line surpassed the Zacks Consensus Estimate of $509 million.
At the end of the reported quarter, backlog was $495 million.
On a regional basis, revenues from the United States fell 1.7% year over year to $185.3 million. Revenues generated from operations in Japan dropped 1.6% to $27.1 million, while that from the Asia Pacific region increased 17.7% to $142.8 million. Revenues generated from Europe rose 6.9% to $135.2 million and that in the Americas increased 16.3% to $36.1 million.
The company reports under Industrial Precision Solutions and Advanced Technology Solutions. A brief discussion on the segmental performance in the quarter under review is provided below:
The Industrial Precision Solutions segment’s revenues totaled $288.4 million, up 9.3% year over year. The segment gained from a 6% rise in volumes and 3% positive impact of foreign currency translation.
Advanced Technology Solutions’ revenues were $238.2 million, up 3% year over year. The increase was backed by the positive impact of 2% from acquisitions and 2% positive impact of foreign currency translation, partially offset by a 1% decline in volumes.
Margin Profile
In the fiscal first quarter, Nordson’s cost of sales increased 2% to $236.6 million on a year-over-year basis. It represented 44.9% of net sales in the quarter compared with 46.8% in the year-ago quarter. Selling and administrative expenses contracted 3.8% to $180.9 million. It represented 34.4% of net sales in the reported quarter compared with 38% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter were $135 million, up 26.2%.
Adjusted operating profits increased 39% to $109 million, while the margin came in at 20.7% compared with 15.8% in the year-ago quarter.
Balance Sheet & Cash Flow
Exiting the fiscal first quarter, Nordson’s cash and cash equivalents were $225.7 million, up from $208.3 million at the end of the previous quarter. The company’s long-term debt declined 8.1% sequentially to $981.3 million.
In first three months of fiscal 2021, the company generated net cash of $143.3 million from operating activities, reflecting a year-over-year increase of 23.2%. Capital spent on the addition of property, plant and equipment fell 43.2% to $7.9 million.
During first three months of fiscal 2021, the company used $5.3 million to buy back shares and pay out dividends amounting to $22.7 million.
Outlook
For fiscal 2021 (ending January 2022), Nordson anticipates adjusted earnings growth of 15-22% on a year-over-year basis. For the fiscal year, the company expects year-over-year sales growth of 4-6%.
Nordson Corporation Price, Consensus and EPS Surprise
Nordson Corporation price-consensus-eps-surprise-chart | Nordson Corporation Quote
Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks are iRobot Corporation (IRBT - Free Report) , Franklin Electric Co., Inc. (FELE - Free Report) and Emerson Electric Co. (EMR - Free Report) . While iRobot sports a Zacks Rank #1 (Strong Buy), Franklin Electric and Emerson carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
iRobot has a trailing four-quarter earnings surprise of 228.19%, on average.
Franklin Electric has a trailing four-quarter earnings surprise of 19.15%, on average.
Emerson has a trailing four-quarter earnings surprise of 21.53%, on average.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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