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Nordson (NDSN) to Report Q1 Earnings: What's in the Cards?
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Nordson Corporation (NDSN - Free Report) is scheduled to report first-quarter fiscal 2022 (ended January 2022) results on Feb 22, after market close.
The company delivered an earnings surprise of 14.17%, on average, in the trailing four quarters, beating estimates thrice and missing once. In the fourth quarter of fiscal 2021 (ended October 2021), Nordson posted earnings of $1.88, which lagged the Zacks Consensus Estimate of $2.10 by 10.48%.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have lost 14.2% compared with the industry’s decline of 10.5%.
Factors at Play
Nordson is expected to have benefited from its diversified business structure, strengthening end markets and large customer base in the fiscal first quarter. Strong demand for its products in industrial and electronics end markets is likely to have augmented its top-line performance in the quarter. Also, the implementation of the company’s Nordson Business System (NBS Next) growth framework is likely to have been beneficial.
The company’s acquisitions are likely to have positively impacted its revenues in the to-be-reported quarter, given the strength across its acquired businesses. Its acquisition of NDC Technologies (November 2021) expanded its test and inspection platform and strengthened its position in the electronics end market. Also, the buyout of vivaMOS Ltd. (September 2020) has added more vigor to its test and inspection capabilities.
Nordson’s investments in product innovation, coupled with its focus on operational execution and generating healthy free cash flow, are likely to have been beneficial in the quarter. Also, its effective pricing actions are anticipated to have been beneficial in the fiscal first quarter.
Despite strength across the end markets, supply chain challenges are expected to have adversely impacted Nordson’s performance. Also, inflation in raw material and other costs, along with labor issues, might have affected its margins and profitability in the to-be-reported quarter.
Owing to its extensive regional presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar might have hurt NDSN’s overseas business in the fiscal first quarter.
The Zacks Consensus Estimate for the company’s fiscal first-quarter total revenues is pegged at $609 million, suggesting 15.6% and 1.7% growth from the year-ago and quarter-ago reported numbers, respectively. The consensus estimate for earnings of $1.93 suggests improvement of 46.2% and 2.7% on a year-over-year and sequential basis, respectively.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Nordson has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $1.93.
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Zacks Consensus Estimate for Middleby’s earnings is pegged at $2.07 per share for the fourth quarter of 2021. MIDD’s shares have lost 2.2% in the past three months.
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +16.13% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Chart Industries’ earnings is pegged at 67 cents per share for fourth-quarter 2021. GTLS’ shares have lost 34.7% in the past three months.
Franklin Electric Co., Inc. (FELE - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 1, currently.
The Zacks Consensus Estimate for Franklin Electric’s earnings is pegged at 63 cents per share for the to-be-reported quarter. FELE’s shares have lost 11.6% in the past three months.
Image: Bigstock
Nordson (NDSN) to Report Q1 Earnings: What's in the Cards?
Nordson Corporation (NDSN - Free Report) is scheduled to report first-quarter fiscal 2022 (ended January 2022) results on Feb 22, after market close.
The company delivered an earnings surprise of 14.17%, on average, in the trailing four quarters, beating estimates thrice and missing once. In the fourth quarter of fiscal 2021 (ended October 2021), Nordson posted earnings of $1.88, which lagged the Zacks Consensus Estimate of $2.10 by 10.48%.
Image Source: Zacks Investment Research
In the past three months, the company’s shares have lost 14.2% compared with the industry’s decline of 10.5%.
Factors at Play
Nordson is expected to have benefited from its diversified business structure, strengthening end markets and large customer base in the fiscal first quarter. Strong demand for its products in industrial and electronics end markets is likely to have augmented its top-line performance in the quarter. Also, the implementation of the company’s Nordson Business System (NBS Next) growth framework is likely to have been beneficial.
The company’s acquisitions are likely to have positively impacted its revenues in the to-be-reported quarter, given the strength across its acquired businesses. Its acquisition of NDC Technologies (November 2021) expanded its test and inspection platform and strengthened its position in the electronics end market. Also, the buyout of vivaMOS Ltd. (September 2020) has added more vigor to its test and inspection capabilities.
Nordson’s investments in product innovation, coupled with its focus on operational execution and generating healthy free cash flow, are likely to have been beneficial in the quarter. Also, its effective pricing actions are anticipated to have been beneficial in the fiscal first quarter.
Despite strength across the end markets, supply chain challenges are expected to have adversely impacted Nordson’s performance. Also, inflation in raw material and other costs, along with labor issues, might have affected its margins and profitability in the to-be-reported quarter.
Owing to its extensive regional presence, its operations are subject to foreign exchange headwinds. A stronger U.S. dollar might have hurt NDSN’s overseas business in the fiscal first quarter.
The Zacks Consensus Estimate for the company’s fiscal first-quarter total revenues is pegged at $609 million, suggesting 15.6% and 1.7% growth from the year-ago and quarter-ago reported numbers, respectively. The consensus estimate for earnings of $1.93 suggests improvement of 46.2% and 2.7% on a year-over-year and sequential basis, respectively.
Earnings Whispers
According to our quantitative model, a stock needs to have the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or at least 3 (Hold) to increase the odds of an earnings beat. But that is not the case here, as we will see below.
You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Nordson has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate is pegged at $1.93.
Nordson Corporation Price and EPS Surprise
Nordson Corporation price-eps-surprise | Nordson Corporation Quote
Zacks Rank: The company carries a Zacks Rank #2.
Key Picks
Here are some companies you may want to consider from the Zacks Industrial Products sector, as our model shows that these have the right combination of elements to post an earnings beat this season:
The Middleby Corporation (MIDD - Free Report) has an Earnings ESP of +3.18% and a Zacks Rank of 2, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Middleby’s earnings is pegged at $2.07 per share for the fourth quarter of 2021. MIDD’s shares have lost 2.2% in the past three months.
Chart Industries, Inc. (GTLS - Free Report) has an Earnings ESP of +16.13% and a Zacks Rank of 3 at present.
The Zacks Consensus Estimate for Chart Industries’ earnings is pegged at 67 cents per share for fourth-quarter 2021. GTLS’ shares have lost 34.7% in the past three months.
Franklin Electric Co., Inc. (FELE - Free Report) has an Earnings ESP of +4.76% and a Zacks Rank of 1, currently.
The Zacks Consensus Estimate for Franklin Electric’s earnings is pegged at 63 cents per share for the to-be-reported quarter. FELE’s shares have lost 11.6% in the past three months.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.