Nordson Earnings: Here’s Why the Stock is Falling Now

Nordson Corporation (NASDAQ:NDSN) delivered a profit and missed 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 7.73%.

Nordson Corporation Earnings Cheat Sheet

Results: Adjusted Earnings Per Share decreased 4.72% to $1.01 in the quarter versus EPS of $1.06 in the year-earlier quarter.

Revenue: Rose 6.09% to $403 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Nordson Corporation reported adjusted EPS income of $1.01 per share. By that measure, the company missed the mean analyst estimate of $1.05. It missed the average revenue estimate of $413.32 million.

Quoting Management: “Nordson’s global team delivered a solid quarter in a tough macroeconomic environment and in comparison to a particularly strong period of demand a year ago,” said Nordson President and Chief Executive Officer Michael F. Hilton. “Earnings per share were within our range of guidance, and on a sequential basis, third quarter sales, operating profit, operating margin, net income and earnings per share all increased over the levels reported in the second quarter. We delivered this performance while maintaining our focus on initiatives that are expected to drive growth and performance over the long term, including support for new products, new applications, emerging market expansion and enhanced customer facing capabilities. Investments in these areas are being balanced with a prudent approach to discretionary spending. In addition, our ability to generate high levels of free cash and our confidence in the strength of our business are enabling us to continue funding multiple strategic objectives.”

Key Stats (on next page)…

Revenue increased 5.47% from $382.1 million in the previous quarter. EPS increased 20.24% from $0.84 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.21 to a profit $1.15. For the current year, the average estimate has moved down from a profit of $3.71 to a profit of $3.67 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)