RPT-Dispensing equipment maker Nordson beats Q3 sales view; announces new $500 mln buyback

Overview

• Nordson Corp fiscal Q3 sales rise 12% yr/yr, beating analyst expectations, per LSEG data

• Adjusted EPS for fiscal Q3 increases 13%, surpassing analyst estimates, per LSEG data

• Company authorizes new $500 mln share repurchase

Outlook

• Nordson expects full-year sales slightly below midpoint of original guidance

• Company anticipates full-year adjusted EPS slightly above midpoint of guidance

• Nordson's full-year outlook supported by pending divestiture completion

• Company maintains full-year sales and earnings guidance after strong Q3

Result Drivers

• ACQUISITION IMPACT - Sales growth driven by 8% favorable acquisition impact, notably from Atrion acquisition

• TECHNOLOGY GROWTH - Advanced Technology Solutions segment achieved 15% organic sales growth, driven by electronics dispense product lines

• MEDICAL SEGMENT - Medical and Fluid Solutions sales rose 32%, largely due to acquisition impact, with organic growth in medical fluid components

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 6 "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 $249.66, about 12.9% above its August 19 closing price of $217.50

• The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw6bZ9Yqa