Earnings Preview: What to Expect From Nordson's Report

Westlake, Ohio-based Nordson Corporation (NDSN) manufactures and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, and other fluids worldwide. With a market cap of $14.3 billion, it operates through Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions segments. It is expected to announce its Q4 earnings on Wednesday, Dec. 11.

Ahead of the event, analysts expect Nordson to report a profit of $2.59 per share, up 5.3% from $2.46 per share reported in the year-ago quarter. The company has surpassed Wall Street’s earnings estimates in the past four quarters. Its adjusted EPS for the last reported quarter grew 2.6% year-over-year to $2.41 while exceeding the consensus estimates by 3.4%.

For fiscal 2024, analysts expected Nordson to report an adjusted EPS of $9.55, up 5.8% from $9.03 in fiscal 2023. In fiscal 2025, its adjusted EPS is expected to grow 8.4% year-over-year to $10.35.

NDSN stock has declined 5.2% on a YTD basis, significantly underperforming the S&P 500 Index’s ($SPX) 22.1% gains and the Industrial Select Sector SPDR Fund’s (XLI) 19.1% returns during the same time frame.

Shares of NDSN stock rose 3.3% following the release of its better-than-expected Q3 earnings on Aug. 21. The company reported a 2% year-over-year growth in sales to $661.6 million, driven by inorganic sales. However, organic sales fell approximately 1% due to lower demand in the electronics and medical product lines. While Nordson surpassed analysts' adjusted earnings estimates, its GAAP-based net income declined by 8.3% year-over-year, totaling $117.3 million.

The consensus opinion on NDSN stock is moderately bullish, with an overall “Moderate Buy” rating. Among the eight analysts covering the stock, three recommend a “Strong Buy” and five advise a “Hold” rating. The mean price target of $277.20 suggests a potential upside of 10.7% from current price levels.

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On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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