It has been a couple of month for the reason that final earnings report for Nordson (NDSN). Shares have misplaced about 11.8% in that timeframe, underperforming the S&P 500.
Will the current damaging development proceed main as much as its subsequent earnings launch, or is Nordson due for a breakout? Earlier than we dive into how traders and analysts have reacted as of late, let’s take a fast have a look at its most up-to-date earnings report so as to get a greater deal with on the vital drivers.
Nordson’s This fall Earnings & Revenues Prime Estimates, Enhance Y/Y
Nordson’s fourth-quarter fiscal 2024 (ended Sept. 30, 2024) adjusted earnings of $2.78 per share surpassed the Zacks Consensus Estimate of $2.59. The underside line elevated 2.6% 12 months over 12 months.
Quarterly Outcomes
Nordson’s revenues had been $744.5 million, up 4% from the year-ago fiscal quarter’s quantity, pushed by stable momentum within the Medical and Fluid Options section. Revenues beat the consensus estimate of $733 million.
Natural gross sales declined 3% 12 months over 12 months attributable to softness within the polymer processing and precision agriculture product strains. Acquisitions had a optimistic impression of 6% whereas overseas foreign money translation had a optimistic impression of 1%. Exiting the fiscal 12 months, the corporate’s backlog totaled $580 million.
On a regional foundation, revenues from the Asia Pacific area elevated 7.5% 12 months over 12 months to $236 million. Revenues generated from Europe elevated 0.6% to $185.4 million, whereas the metric within the Americas elevated 2.4% to $323.2 million.
Nordson experiences revenues underneath three segments. The segments are Industrial Precision Options, Medical and Fluid Options and Superior Know-how Options. A short snapshot of the segmental gross sales is supplied beneath:
Revenues from Industrial Precision Options amounted to $392.2 million, down 3.3% from the year-ago fiscal quarter’s stage. The section contributed 52.7% to NDSN’s high line within the quarter.
Natural gross sales decreased 5.5% from the year-ago fiscal quarter’s stage. Acquisitions boosted gross sales by 1.2% whereas overseas foreign money translation had a optimistic impression of 1%.
Revenues from Medical and Fluid Options amounted to $200.2 million, up 18.7% from the year-ago fiscal quarter’s stage. The section contributed 26.9% to NDSN’s high line.
Natural gross sales decreased 3.2% from the year-ago fiscal quarter’s stage. Acquisitions boosted gross sales by 21.4% whereas overseas foreign money translation had a optimistic impression of 0.5%.
Superior Know-how Options’ gross sales had been $152.1 million, up 4.7% from the year-ago fiscal quarter’s determine. The metric represented 20.4% of Nordson’s revenues within the interval.
Natural gross sales elevated 3.9% from the year-ago fiscal quarter’s stage. Overseas foreign money translation had a optimistic impression of 0.8%.
Margin Profile
Nordson’s value of gross sales elevated 1.9% from the year-ago fiscal quarter’s stage to $341.7 million. Gross revenue was $402.8 million, up 4.9% from the year-ago fiscal quarter’s stage. The gross margin elevated 70 foundation factors (bps) to 54.1%.
Promoting and administrative bills elevated 12.5% 12 months over 12 months to $223.9 million. Adjusted EBITDA was $241.1 million, the margin being 32.4%. Working earnings was $178.9 million, down 3.2% 12 months on 12 months. Working margin of 24% decreased 170 bps from the year-ago interval.
Web curiosity bills totaled $27.3 million, reflecting a 5.4% enhance from the year-ago fiscal quarter’s stage.
Nordson’s Steadiness Sheet & Money Move
On the time of exiting fiscal 2024, Nordson’s money and money equivalents had been $116 million, marginally larger than $115.7 million recorded on the finish of fiscal 2023. Lengthy-term debt was $2.1 billion in contrast with $1.6 billion recorded on the finish of fourth-quarter fiscal 2023.
In fiscal 2024, NDSN generated web money of $556.2 million from working actions, down 13.2% from the final fiscal 12 months interval’s tally. Capital invested in buying property, plant and tools totaled $64.4 million, up 86.1% from the year-ago fiscal interval.
Dividends/Share Buyback
In fiscal 2024, Nordson paid out dividends of $161.4 million, up 7.3% from $150.4 million within the earlier fiscal 12 months.
Treasury buy shares amounted to $33.3 million, down from $89.7 million within the final fiscal 12 months.
Outlook
For fiscal 2025 (ending October 2025), Nordson anticipates adjusted earnings to be within the vary of $9.70-$10.50 per share. Gross sales are anticipated to be within the vary of $2,750-$2,870 million.
For the primary quarter of fiscal 2025 (ending January 2025), it tasks gross sales to be within the vary of $615-$655 million, with adjusted earnings of $1.95-$2.15 per share.
How Have Estimates Been Shifting Since Then?
Up to now month, traders have witnessed a downward development in estimates revision.
The consensus estimate has shifted -8.17% attributable to these modifications.
VGM Scores
At the moment, Nordson has a subpar Progress Rating of D, a grade with the identical rating on the momentum entrance. Following the very same course, the inventory was allotted a grade of D on the worth facet, placing it within the backside 40% for this funding technique.
General, the inventory has an combination VGM Rating of F. For those who aren’t targeted on one technique, this rating is the one you ought to be fascinated about.
Outlook
Estimates have been broadly trending downward for the inventory, and the magnitude of those revisions signifies a downward shift. Notably, Nordson has a Zacks Rank #3 (Maintain). We anticipate an in-line return from the inventory within the subsequent few months.
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Nordson Corporation (NDSN) : Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the writer and don’t essentially replicate these of Nasdaq, Inc.
