Earnings Review and Free Research Report: Nordson’s Quarterly Revenue Soared 20%; Adjusted EPS Jumped 21%

Research Desk Line-up: Continental Materials Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 31, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Nordson Corp. (NASDAQ: NDSN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=NDSN, following the Company’s posting of its third quarter financial results on August 21, 2017. Nordson delivered the strongest quarter in its history with excellent organic growth across the business, strong contributions from recent acquisitions, and continued execution by its global team. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

http://protraderdaily.com/register/

Get more of our free earnings reports coverage from other constituents of the Diversified Machinery industry. Pro-TD has currently selected Continental Materials Corporation (NYSE American: CUO) for due-diligence and potential coverage as the Company reported on August 15, 2017, its financial results for Q2 2017 which ended on July 01, 2017. Register for a free membership today, and be among the early birds that get access to our report on Continental Materials when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on NDSN; also brushing on CUO. With the links below you can directly download the report of your stock of interest free of charge at:

http://protraderdaily.com/optin/?symbol=NDSN

http://protraderdaily.com/optin/?symbol=CUO

Earnings Reviewed

For the quarter ending July 31, 2017, Nordson reported sales of $589.44 million, up 20% compared to sales of $489.90 million in Q3 FY16. This change in sales included an 11% growth in organic volume, 10% increase related to the first year effect of acquisitions, offset by a less than 1% drop related to the unfavorable effects of currency translation. The Company’s revenue topped analysts’ expectations of $576.3 million.

For Q3 FY17, Nordson reported operating profit was $153.47 million compared to operating profit of $123.69 million in Q3 FY16. The Company’s EBITDA jumped 29% to $179 million and EBITDA per diluted share increased 27% to $3.08, both compared to the year earlier corresponding quarter. Nordson’s adjusted EBITDA climbed 30% on a y-o-y basis.

Nordson’s net income was $101 million and GAAP diluted earnings per share were $1.74 in Q3 FY17 compared to net income of $84 million and $1.46 for Q3 FY16. The Company’s adjusted diluted earnings per share grew by 21% to $1.78 on a y-o-y basis during the reported quarter. Nordson’s earnings exceeded Wall Street’s expectations of $1.67 per share.

Nordson’s Segment Results

The Adhesive Dispensing Systems segment recorded $233.37 million with its sales volume increasing 6% on a y-o- y basis, driven by growth in packaging, nonwovens, and polymer product lines and all regions were positive with the exception of Europe. This was the ninth consecutive quarter of organic growth in this segment. For Q3 FY17, reported operating margin in the segment improved 1% to 28% on a y-o-y basis.

During Q3 FY17, the Advanced Technology Systems’ sales surged 41.4% to $290.41 million, including an 18% increase in organic volume and a 24% growth related to the first year effect of acquisitions. The segment’s growth was attributed to customer demand being robust for its automated dispensing, surface treatment, and test and inspection solutions across multiple electronics end markets. Growth was also solid across multiple product lines in our growing medical portfolio. Reported operating margin in the segment was 30% in Q3 FY17, or 33% on an adjusted basis.

For Q3 FY17, the Industrial Coating Systems’ sales grew 3.0% to $65.67 million, driven by the Company’s cold material, liquid painting, and UV curing product lines, with the Americas and Asia/Pacific being strongest regionally. In the reported quarter, operating margin in the segment improved three percentage points to 20% due to better product mix.

Order Rates and Backlog

Nordson’s order rates for the 12-week period ending August 13, 2017, measured in constant currency, decreased by 2% on a y-o-y basis. The Company’s backlog for the quarter ended July 31, 2017, was approximately $372 million, an increase of 10% on a y-o-y basis and inclusive of 13% growth due to acquisitions offset by a 3% decline in organic growth.

Outlook

For Q4 FY17, Nordson is forecasting sales to increase 4% to 8% on a y-o-y basis, including declinein organic volume of 3% to 7%, 10% growth from the first year effect of acquisitions, and a positive currency effect of 1%. At the midpoint of this outlook, the Company is estimating operating margin to be approximately 21% and GAAP diluted earnings per share are expected to be in the range of $1.18 to $1.32. Nordson’s EBITDA, EBITDA margin, and EBITDA per diluted share are expected to be $138 million, 26%, and $2.37 at the midpoint of the guidance, respectively.

Stock Performance

Nordson’s share price finished yesterday’s trading session at $108.65, slightly up 0.30%. A total volume of 235.86 thousand shares have exchanged hands. The Company’s stock price advanced 9.59% in the previous twelve months. Shares of the Company have a PE ratio of 21.75 and have a dividend yield of 1.10%. The stock currently has a market cap of $6.25 billion.

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