Back to top

Image: Bigstock

Nordson (NDSN) Gears Up to Report Q3 Earnings: What to Expect

Read MoreHide Full Article

Nordson Corporation (NDSN - Free Report) is scheduled to release third-quarter fiscal 2024 (ended Jul 31) results on Aug 21, after market close.

The company has an impressive earnings surprise history, with the average surprise being 3.7%. In the last reported quarter, its earnings of $2.34 per share surpassed the Zacks Consensus Estimate of $2.30 by 1.7%.

Let’s see how things have shaped up for Nordson this time around.

Factors to Note

The Industrial Precision Solutions segment’s results are likely to benefit from strong customer demand for the industrial coatings, polymer processing and packaging product lines. The Zacks Consensus Estimate for the segment’s revenues is pegged at $366.7 million, indicating a 8.5% jump from the year-ago reported number.

The Medical and Fluid Solutions segment is expected to have benefited from solid demand for fluid and medical interventional solutions product lines, driven by minimally invasive surgeries and advancement in fluid management technology. Also, investments in automation, Artificial Intelligence, memory and electronic product innovation are likely to have aided the segment’s performance. The consensus mark for the segment’s revenues is pegged at $172.6 million, indicating a 1% increase from the year-ago reported figure.

The acquisition of ARAG Group and its subsidiaries, which expanded Nordson’s core capabilities in precision dispensing technology and helped it expand into the rapidly growing precision agriculture end-market, is expected to augment the company’s results.

However, softness in its Advanced Technology Solutions segment is expected to have weighed on Nordson’s performance. The decrease in demand for electronics dispensing product lines, serving in the cyclical semiconductor end market, is expected to hurt its results. The Zacks Consensus Estimate for the segment’s revenues is pegged at $117.3 million, indicating a decline of 15.9% from the year-ago reported number.

The escalating cost of sales poses a threat to NDSN’s bottom line. Acquisition-related costs and high input costs are expected to have pushed up its operating expenses, which is likely to have reflected in its margins.

Amid this, the Zacks Consensus Estimate for the company’s third-quarter revenues is pegged at $655.2 million, indicating an increase of 1% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pinned at $2.33 per share, indicating a 0.9% decrease from the year-ago quarter’s number.

Nordson Corporation Price and EPS Surprise

Nordson Corporation Price and EPS Surprise

Nordson Corporation price-eps-surprise | Nordson Corporation Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for NDSN this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: NDSN has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.33. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: NDSN presently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Industrial Companies

Applied Industrial Technologies’ (AIT - Free Report) fourth-quarter fiscal 2024 (ended June 2024) adjusted earnings of $2.64 per share surpassed the Zacks Consensus Estimate of $2.52. On a year-over-year basis, the bottom line increased approximately 12.3%.

AIT’s net sales of $1.16 billion missed the consensus estimate of $1.19 billion.  However, the top line inched up 0.2% year over year.

Flowserve Corporation’s (FLS - Free Report) second-quarter adjusted earnings of 73 cents per share surpassed the Zacks Consensus Estimate of 63 cents. The bottom line increased 40.4% on a year-over-year basis.

Net sales of $1.16 billion beat the consensus estimate of $1.12 billion. The top line was up 7.1% year over year.

Ingersoll Rand Inc. (IR - Free Report) reported earnings per share of 83 cents in the second quarter, which beat the Zacks Consensus Estimate of 74 cents. The bottom line improved 22.1% year over year.

IR’s quarterly revenues rose 7% year over year to $1.80 billion. The top line surpassed the consensus estimate of $1.78 billion.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in