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Nordson Corporation (NDSN - Free Report) reported better-than-expected second-quarter fiscal 2021 (ended Apr 30, 2021) results. Quarterly earnings and sales surpassed the Zacks Consensus Estimate by 28.5% and 7.5%, respectively.
Adjusted earnings, excluding one-time charges and gains, in the reported quarter were $2.12 per share, surpassing the consensus estimate of $1.65. Also, the bottom line increased 34% from the year-ago figure of $1.58 owing to growth in sales.
Revenue Details
In the reported quarter, Nordson’s net sales were $589.5 million, up 11.3% year over year. The top line benefited from 10.4% improvement in organic volumes, and a positive impact of 3.7% from foreign currency translation, partially offset by 2.8% net unfavorable impact of acquisitions and divestitures. Also, the top line surpassed the Zacks Consensus Estimate of $548.6 million.
On a regional basis, revenues from the United States increased 7.4% year over year to $202.9 million. Revenues generated from operations in Japan fell 11.8% to $27.8 million, while that from the Asia Pacific region increased 15.5% to $157.4 million. Revenues generated from Europe rose 15% to $156.5 million and that in the Americas increased 22.5% to $44.9 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:
Industrial Precision Solutions’ revenues totaled $298.8 million, up 5.8% year over year. The segment gained from an 8.3% rise in volumes and 4.8% positive impact of foreign currency translation, partially offset by 7.3% net unfavorable impact of acquisitions and divestitures.
Advanced Technology Solutions’ revenues were $290.8 million, up 17.6% year over year. The increase was backed by 12.7% rise in volumes, and positive impacts of 2.4% and 2.5% from acquisitions and foreign currency translation, respectively.
Margin Profile
In the fiscal second quarter, Nordson’s cost of sales increased 5% to $251.8 million on a year-over-year basis. It represented 42.7% of net sales in the quarter compared with 45.3% in the year-ago quarter. Selling and administrative expenses increased 4.1% to $171.3 million. It represented 29.1% of net sales in the reported quarter compared with 31.1% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter were $191.7 million, up 25.8%.
Adjusted operating profits increased 32.7% to $166.4 million, while margin came in at 28% compared with 24% in the year-ago quarter.
Balance Sheet & Cash Flow
Exiting the fiscal second quarter, Nordson’s cash and cash equivalents were $133.3 million, down from $225.7 million at the end of the previous quarter. The company’s long-term debt declined 15.5% sequentially to $829 million.
In the first six months of fiscal 2021, the company generated net cash of $247.7 million from operating activities, reflecting a year-over-year increase of 13.5%. Capital spent on the addition of property, plant and equipment fell 27.5% to $18.7 million.
During the first six months of fiscal 2021, the company used $30.3 million to buy back shares and pay out dividends amounting to $45.3 million.
Outlook
For fiscal 2021 (ending January 2022), Nordson anticipates adjusted earnings of $7.20-$7.50, indicating growth of 31-37% on a year-over-year basis. For the fiscal year, the company expects year-over-year sales growth of 8-10%.
Nordson Corporation Price, Consensus and EPS Surprise
Tennant delivered an earnings surprise of 140.84%, on average, in the trailing four quarters.
Barnes delivered an earnings surprise of 19.45%, on average, in the trailing four quarters.
Dover delivered an earnings surprise of 21.35%, on average, in the trailing four quarters.
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Nordson (NDSN) Q2 Earnings & Revenues Surpass Estimates
Nordson Corporation (NDSN - Free Report) reported better-than-expected second-quarter fiscal 2021 (ended Apr 30, 2021) results. Quarterly earnings and sales surpassed the Zacks Consensus Estimate by 28.5% and 7.5%, respectively.
Adjusted earnings, excluding one-time charges and gains, in the reported quarter were $2.12 per share, surpassing the consensus estimate of $1.65. Also, the bottom line increased 34% from the year-ago figure of $1.58 owing to growth in sales.
Revenue Details
In the reported quarter, Nordson’s net sales were $589.5 million, up 11.3% year over year. The top line benefited from 10.4% improvement in organic volumes, and a positive impact of 3.7% from foreign currency translation, partially offset by 2.8% net unfavorable impact of acquisitions and divestitures. Also, the top line surpassed the Zacks Consensus Estimate of $548.6 million.
On a regional basis, revenues from the United States increased 7.4% year over year to $202.9 million. Revenues generated from operations in Japan fell 11.8% to $27.8 million, while that from the Asia Pacific region increased 15.5% to $157.4 million. Revenues generated from Europe rose 15% to $156.5 million and that in the Americas increased 22.5% to $44.9 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:
Industrial Precision Solutions’ revenues totaled $298.8 million, up 5.8% year over year. The segment gained from an 8.3% rise in volumes and 4.8% positive impact of foreign currency translation, partially offset by 7.3% net unfavorable impact of acquisitions and divestitures.
Advanced Technology Solutions’ revenues were $290.8 million, up 17.6% year over year. The increase was backed by 12.7% rise in volumes, and positive impacts of 2.4% and 2.5% from acquisitions and foreign currency translation, respectively.
Margin Profile
In the fiscal second quarter, Nordson’s cost of sales increased 5% to $251.8 million on a year-over-year basis. It represented 42.7% of net sales in the quarter compared with 45.3% in the year-ago quarter. Selling and administrative expenses increased 4.1% to $171.3 million. It represented 29.1% of net sales in the reported quarter compared with 31.1% in the year-ago quarter.
Adjusted earnings before interest, tax, depreciation and amortization (EBITDA) in the quarter were $191.7 million, up 25.8%.
Adjusted operating profits increased 32.7% to $166.4 million, while margin came in at 28% compared with 24% in the year-ago quarter.
Balance Sheet & Cash Flow
Exiting the fiscal second quarter, Nordson’s cash and cash equivalents were $133.3 million, down from $225.7 million at the end of the previous quarter. The company’s long-term debt declined 15.5% sequentially to $829 million.
In the first six months of fiscal 2021, the company generated net cash of $247.7 million from operating activities, reflecting a year-over-year increase of 13.5%. Capital spent on the addition of property, plant and equipment fell 27.5% to $18.7 million.
During the first six months of fiscal 2021, the company used $30.3 million to buy back shares and pay out dividends amounting to $45.3 million.
Outlook
For fiscal 2021 (ending January 2022), Nordson anticipates adjusted earnings of $7.20-$7.50, indicating growth of 31-37% on a year-over-year basis. For the fiscal year, the company expects year-over-year sales growth of 8-10%.
Nordson Corporation Price, Consensus and EPS Surprise
Nordson Corporation price-consensus-eps-surprise-chart | Nordson Corporation Quote
Zacks Rank & Stocks to Consider
The company currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the same space are Tennant Company (TNC - Free Report) , Barnes Group, Inc. (B - Free Report) and Dover Corporation (DOV - Free Report) . While Tennant currently sports a Zacks Rank #1 (Strong Buy), Barnes and Dover carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Tennant delivered an earnings surprise of 140.84%, on average, in the trailing four quarters.
Barnes delivered an earnings surprise of 19.45%, on average, in the trailing four quarters.
Dover delivered an earnings surprise of 21.35%, on average, in the trailing four quarters.
Bitcoin, Like the Internet Itself, Could Change Everything
Blockchain and cryptocurrency have sparked one of the most exciting discussion topics of a generation. Some call it the “Internet of Money” and predict it could change the way money works forever. If true, it could do to banks what Netflix did to Blockbuster and Amazon did to Sears. Experts agree we’re still in the early stages of this technology, and as it grows, it will create several investing opportunities.
Zacks has just revealed 3 companies that can help investors capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
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