Nordson beats Q1 sales estimates; raises annual sales, earnings guidance

Overview

• Precision technology firm's fiscal Q1 sales rose 9% to $669 mln, beating expectations

• Adjusted EPS for fiscal Q1 was $2.37, slightly missing analyst estimates

• Company raised full-year guidance for sales and earnings

Outlook

• Nordson sees second-quarter sales between $710 mln and $740 mln

• Company forecasts Q2 adjusted EPS between $2.70 and $2.90

• Nordson raises full-year sales guidance to $2,860 mln - $2,980 mln

• Company increases full-year adjusted EPS guidance to $11.00 - $11.60

Result Drivers

• ORGANIC GROWTH - Nordson reported organic sales growth of 7% across all segments, with notable strength in the semiconductor space

• CURRENCY IMPACT - Favorable currency translation contributed 4% to sales growth, offsetting some divestiture impacts

• SEGMENT PERFORMANCE - Advanced Technology Solutions sales rose 23% driven by electronics dispense and x-ray systems demand

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Nordson Corp is $276.50, about 6.9% below its February 17 closing price of $296.93

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 21 three months ago

Press Release: ID:nBw5ynPYBa

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