We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Why Is Nordson (NDSN) Up 0.2% Since Last Earnings Report?
Read MoreHide Full Article
A month has gone by since the last earnings report for Nordson (NDSN - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nordson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Nordson Surpasses Q4 Earnings, Revenues Rise Y/Y
Nordson’s 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 earnings 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
Currently, Nordson has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Nordson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Why Is Nordson (NDSN) Up 0.2% Since Last Earnings Report?
A month has gone by since the last earnings report for Nordson (NDSN - Free Report) . Shares have added about 0.2% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Nordson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
Nordson Surpasses Q4 Earnings, Revenues Rise Y/Y
Nordson’s 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 earnings 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.
How Have Estimates Been Moving Since Then?
It turns out, estimates review flatlined during the past month.
VGM Scores
Currently, Nordson has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Nordson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.