Nordson Earnings: Here’s Why Investors are Not Happy Now
Nordson Corporation (NASDAQ:NDSN) delivered a profit and met Wall Street’s expectations, AND came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are down 3.61%.
Nordson Corporation Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 0% to $0.84 in the quarter versus EPS of $0.84 in the year-earlier quarter.
Revenue: Rose 21.23% to $382.1 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Nordson Corporation reported adjusted EPS income of $0.84 per share. By that measure, the company missed the mean analyst estimate of $0.84. It missed the average revenue estimate of $382.56 million.
Quoting Management: “Our team continued to deliver value to our customers at a high level across the diverse end markets we serve, while also focusing on continuous improvement initiatives, resulting in another excellent quarter,” said Nordson President and Chief Executive Officer Michael F. Hilton. “Sales, operating profit, net income and earnings per share all improved on a year-over-year basis and were in line with our guidance. The 7 percent organic sales growth outpaced levels recently reported by many industrial companies, and our operating margin was very solid at 22 percent. On a sequential basis, we leveraged strong top line growth of 10 percent to generate incremental operating margin of 59 percent. We delivered this strong performance while continuing to fund strategic growth initiatives, introducing a variety of new products, and further integrating recently acquired businesses. Also during the quarter we executed on our strategy of returning value to our shareholders by investing $22 million for the repurchase of shares and by distributing approximately $10 million in dividends during the quarter. Free cash flow in the quarter before dividends was $47 million and our balance sheet has significant capacity for ongoing investments. Overall, our team continued to execute at a high level worldwide.”
Key Stats (on next page)…
Revenue increased 10.1% from $347.04 million in the previous quarter. EPS increased 35.48% from $0.62 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $1.14 to a profit $1.15. For the current year, the average estimate has moved down from a profit of $3.9 to a profit of $3.83 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)