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Nordson Corporation (NDSN) Q3 Earnings & Revenues Beat

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Nordson Corporation (NDSN - Free Report) reported robust third-quarter fiscal 2016 results (ended Jul 31, 2016).

Adjusted earnings of $1.47 per share surged 26.7% from the year-ago tally of $1.16. The bottom line also surpassed the Zacks Consensus Estimate of $1.34 per share.

Inside the Headlines

Nordson Corporation generated net sales worth $489.9 million, up 5.9% year over year. The top line surpassed the Zacks Consensus Estimate of $481 million.

The company’s cost of sales inched up 1.1% to $216.7 million and represented 44.2% of net revenue as against 46.3% in the year-ago quarter.

Selling, general and administrative expenses of $149.5 million (up 2.7% year over year) comprised roughly 30.5% of net revenue. The company’s operating margin was 25.2% compared with 22.2% in the year-ago quarter.

Segment Details

In the reported quarter, revenues from Adhesive dispensing systems grew 4.3% to $220.8 million. The year-over-year improvement came on the back of higher demand from the company’s general product assembly and consumer non-durable goods markets.

Revenues of the Advanced technology systems came in at $205.4 million, up 11.1% year over year. The upside was driven by higher demand for semi-automated and automated dispense equipments in the electronic business hubs as well as increased demand for fluid management components in the medical end markets.

Industrial coating systems revenues were $63.7 million, down 3.7% year over year, due to weak demand for certain major product lines offered by the segment.

Other Financial Particulars

Nordson Corporation exited the fiscal third quarter with cash and marketable securities worth $60.3 million compared with $50.3 million as of Oct 31, 2015. The company’s long-term debt was $1,026.6 million as against $1,092.6 million as of Oct 31, 2015.

For the first nine months of fiscal 2016, Nordson Corporation generated cash of $67.8 million from operating activities, up 36.1% year over year. Capital expenditure on purchase of property, plant and equipment totaled $19.9 million compared with $12.7 million a year ago.

Outlook

Nordson Corporation aims to bolster its revenues and earnings on the back of higher customer project activities, solid order rates and stronger backlog. The company anticipates earnings in the range of $1.15–$1.27 per share for the fiscal fourth quarter. Revenues for the upcoming quarter are projected to increase 6–10% year over year.

As of Aug 22, Nordson Corporation closed the trading session at $92.25 per share. It is yet to be seen how investors react to the stock’s sturdy fiscal third-quarter performance.

NORDSON CORP Price, Consensus and EPS Surprise

 

NORDSON CORP Price, Consensus and EPS Surprise | NORDSON CORP Quote

Stocks to Consider     

Nordson Corporation currently carries a Zacks Rank #4 (Sell). Some better-ranked stocks within the industry include DXP Enterprises, Inc. (DXPE - Free Report) , Gorman-Rupp Co. (GRC - Free Report) and Tennant Company (TNC - Free Report) . All the three companies currently sport a Zacks Rank #1 (Strong Buy).

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