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.
Nordson Corporation (NDSN - Free Report) fourth-quarter fiscal 2019 (ended Oct 31, 2019) earnings beat expectations, the positive earnings surprise being 1.1%.
Adjusted earnings, excluding one-time charges and gains, were $1.79 per share, surpassing the Zacks Consensus Estimate of $1.77. Also, the bottom line increased 24.3% from the year-ago figure of $1.44 primarily due to higher sales, fall in net interest expenses and lower share count.
For fiscal 2019, Nordson’s adjusted earnings per share were $5.87, down 1.2% from the year-ago figure of $5.94.
Inside the Headlines
In the reported quarter, Nordson’s sales were $585.5 million, increasing 2.8% year over year. The top line gained from 4% increase in organic volume, partially offset by 1% adverse impact of unfavorable movements in foreign currencies. However, revenues missed the Zacks Consensus Estimate of $605 million. At the quarter end, backlog was $385 million, down 1% year over year.
On a regional basis, revenues from the United States increased 12% year over year to $206.9 million. Revenues generated from Japan increased 7.8% to $37.2 million while that from the Asia Pacific improved 17.3% to $150.9 million. Revenues from Europe decreased 16.5% to $145.9 million and that from the Americas declined 4.7% to $44.5 million.
The company reports top-line results under three segments — Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. A brief discussion on the segmental performance for the quarter is provided below:
Adhesive Dispensing Systems’ revenues totaled $253.7 million, increasing 1.1% year over year. The improvement was driven by 3% increase in volume, partially offset by 2% adverse impact of foreign currency translation.
Advanced Technology Systems’ revenues were $249 million, down 0.5% year over year. The fall was due to 1% adverse impact of foreign currency movements, and about 1% decrease in volume.
Revenues generated from Industrial Coating Systems increased 21.3% year over year to $82.8 million. Volume increased 22% while foreign currency movements had a negative impact of 1%.
For fiscal 2019, the company’s sales were $2,194.2 million, decreasing 2.7% year over year.
Nordson Corporation Price, Consensus and EPS Surprise
In the quarter, Nordson’s cost of sales increased 2% to $266.5 million. It represented 45.5% of sales compared with 45.9% in the year-ago quarter. Selling and administrative expenses declined 6.2% to $179.3 million. It represented 30.6% of sales compared with 33.5% a year ago.
Adjusted earnings before interest, tax, depreciation and amortization were $164.8 million, increasing 14.9% year over year.
Operating profit increased 20% to $139.7 million. Margin came in at 23.9% compared with 20.5% in the year-ago quarter.
Balance Sheet & Cash Flow
Exiting the fiscal fourth quarter, Nordson’s cash and marketable securities were $151.2 million, up roughly 58% from $95.7 million as of Oct 31, 2018. The company’s long-term debt decreased 16.3% to $1,075.4 million at the end of fiscal 2019.
In the fiscal fourth quarter, the company generated net cash of $146.5 million from operating activities, down 9.4% year over year. Adjusted free cash flow was roughly $128.7 million, increasing 9%. Capital spent on the addition of property, plant and equipment was $18.2 million.
During the reported quarter, the company paid dividends amounting to $21.8 million.
A day before releasing results, Nordson announced that its board of directors approved payment of a quarterly cash dividend of 38 cents per share to shareholders of record as on Dec 20, 2019. The payment will be made on Jan 7, 2020.
Outlook
For fiscal 2020 (ending October 2020), the company anticipates organic sales to grow in the range of 1-3%. The effective tax rate is estimated to be about 22%.
Dover delivered average positive earnings surprise of 6.70% in the trailing four quarters.
DXP Enterprises delivered average positive earnings surprise of 17.67% in the trailing four quarters.
Standex International’s earnings surprise in the last reported quarter was 2.11%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
Image: Bigstock
Nordson's (NDSN) Q4 Earnings Surpass Estimates, Rise Y/Y
Nordson Corporation (NDSN - Free Report) fourth-quarter fiscal 2019 (ended Oct 31, 2019) earnings beat expectations, the positive earnings surprise being 1.1%.
Adjusted earnings, excluding one-time charges and gains, were $1.79 per share, surpassing the Zacks Consensus Estimate of $1.77. Also, the bottom line increased 24.3% from the year-ago figure of $1.44 primarily due to higher sales, fall in net interest expenses and lower share count.
For fiscal 2019, Nordson’s adjusted earnings per share were $5.87, down 1.2% from the year-ago figure of $5.94.
Inside the Headlines
In the reported quarter, Nordson’s sales were $585.5 million, increasing 2.8% year over year. The top line gained from 4% increase in organic volume, partially offset by 1% adverse impact of unfavorable movements in foreign currencies. However, revenues missed the Zacks Consensus Estimate of $605 million. At the quarter end, backlog was $385 million, down 1% year over year.
On a regional basis, revenues from the United States increased 12% year over year to $206.9 million. Revenues generated from Japan increased 7.8% to $37.2 million while that from the Asia Pacific improved 17.3% to $150.9 million. Revenues from Europe decreased 16.5% to $145.9 million and that from the Americas declined 4.7% to $44.5 million.
The company reports top-line results under three segments — Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. A brief discussion on the segmental performance for the quarter is provided below:
Adhesive Dispensing Systems’ revenues totaled $253.7 million, increasing 1.1% year over year. The improvement was driven by 3% increase in volume, partially offset by 2% adverse impact of foreign currency translation.
Advanced Technology Systems’ revenues were $249 million, down 0.5% year over year. The fall was due to 1% adverse impact of foreign currency movements, and about 1% decrease in volume.
Revenues generated from Industrial Coating Systems increased 21.3% year over year to $82.8 million. Volume increased 22% while foreign currency movements had a negative impact of 1%.
For fiscal 2019, the company’s sales were $2,194.2 million, decreasing 2.7% year over year.
Nordson Corporation Price, Consensus and EPS Surprise
Nordson Corporation price-consensus-eps-surprise-chart | Nordson Corporation Quote
Margin Details
In the quarter, Nordson’s cost of sales increased 2% to $266.5 million. It represented 45.5% of sales compared with 45.9% in the year-ago quarter. Selling and administrative expenses declined 6.2% to $179.3 million. It represented 30.6% of sales compared with 33.5% a year ago.
Adjusted earnings before interest, tax, depreciation and amortization were $164.8 million, increasing 14.9% year over year.
Operating profit increased 20% to $139.7 million. Margin came in at 23.9% compared with 20.5% in the year-ago quarter.
Balance Sheet & Cash Flow
Exiting the fiscal fourth quarter, Nordson’s cash and marketable securities were $151.2 million, up roughly 58% from $95.7 million as of Oct 31, 2018. The company’s long-term debt decreased 16.3% to $1,075.4 million at the end of fiscal 2019.
In the fiscal fourth quarter, the company generated net cash of $146.5 million from operating activities, down 9.4% year over year. Adjusted free cash flow was roughly $128.7 million, increasing 9%. Capital spent on the addition of property, plant and equipment was $18.2 million.
During the reported quarter, the company paid dividends amounting to $21.8 million.
A day before releasing results, Nordson announced that its board of directors approved payment of a quarterly cash dividend of 38 cents per share to shareholders of record as on Dec 20, 2019. The payment will be made on Jan 7, 2020.
Outlook
For fiscal 2020 (ending October 2020), the company anticipates organic sales to grow in the range of 1-3%. The effective tax rate is estimated to be about 22%.
Zacks Rank & Key Picks
Nordson currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the same space are Dover Corporation (DOV - Free Report) , DXP Enterprises, Inc. (DXPE - Free Report) and Standex International Corporation (SXI - Free Report) . All these companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Dover delivered average positive earnings surprise of 6.70% in the trailing four quarters.
DXP Enterprises delivered average positive earnings surprise of 17.67% in the trailing four quarters.
Standex International’s earnings surprise in the last reported quarter was 2.11%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>