Nordson Corporation’s (NDSN Quick QuoteNDSN - Free Report) third-quarter fiscal 2024 (ended Jul 31, 2024) adjusted earnings of $2.41 per share surpassed the Zacks Consensus Estimate of $2.33. The bottom line decreased 6% year over year.

The company has also completed its previously announced acquisition of Atrion Corporation .

Quarterly Results of NDSN

Nordson’s revenues were $661.6 million, up 2% from the year-ago fiscal quarter’s number driven by solid momentum in the Industrial Precision Solutions segment. Revenues beat the Zacks Consensus Estimate of $655 million.

Organic sales declined 1% year over year due to softness in the electronics and medical product lines. Acquisitions had a positive impact of 4% while foreign currency translation had a negative impact of 1%.

On a regional basis, revenues from the Asia Pacific region increased 2.4% year over year to $195.2 million. Revenues generated from Europe increased 7.1% to $179.4 million while the metric in the Americas decreased 1.2% to $287 million.

Nordson reports revenues under three segments. The segments are Industrial Precision Solutions, Medical and Fluid Solutions and Advanced Technology Solutions. A brief snapshot of the segmental sales is provided below:

Revenues from Industrial Precision Solutions amounted to $370.6 million, up 9.6% from the year-ago fiscal quarter’s level. The segment contributed 56% to NDSN’s top line in the quarter.

Organic sales increased 3.6% from the year-ago fiscal quarter’s level. Acquisitions had a positive impact of 7.4% while foreign currency translation had a negative impact of 1.4%.

Revenues from Medical and Fluid Solutions amounted to $166.7 million, down 2.4% from the year-ago fiscal quarter’s level. The segment contributed 25.2% to NDSN’s top line.

Organic sales decreased 2% from the year-ago fiscal quarter’s level. Foreign currency translation had a negative impact of 0.4%.

Advanced Technology Solutions’ sales were $124.3 million, down 10.9% from the year-ago fiscal quarter’s figure. The metric represented 18.8% of Nordson’s revenues in the period.

Organic sales decreased 10.2% from the year-ago fiscal quarter’s level. Foreign currency translation had a negative impact of 0.7%.

Margin Profile

Nordson’s cost of sales increased 1.5% from the year-ago fiscal quarter’s level to $292.6 million. Gross profit was $369 million, up 2.4% from the year-ago fiscal quarter’s level. The gross margin increased 30 basis points (bps) to 55.8%.

Selling and administrative expenses increased 6.7% year over year to $201.9 million. Adjusted EBITDA was $208.1 million, the margin being 31%. Operating income was $167.1 million, down 2.3% year on year. Operating margin of 25.3% decreased 110 bps from the year-ago period.

Net interest expenses totaled $17.8 million, reflecting a 54.8% increase from the year-ago fiscal quarter’s level.

Balance Sheet & Cash Flow

At the time of exiting the third quarter, Nordson’s cash and cash equivalents were $165.3 million compared with $115.7 million recorded at the end of the fourth quarter of fiscal 2023. Long-term debt was $1.4 billion compared with $1.6 billion recorded at the end of fourth-quarter fiscal 2023.

In the first nine months of fiscal 2024, NDSN generated net cash of $459.8 million from operating activities, down 3.8% from the last fiscal year period’s tally. Capital invested in purchasing property, plant and equipment totaled $43.8 million, up 81% from the year-ago fiscal period.

Dividends/Share Buyback

In the first nine months of fiscal 2024, Nordson paid out dividends of $116.8 million, up 4.8% from $111.5 million in the same period of the previous fiscal year.

Treasury purchase shares amounted to $34.1 million in the first nine months of the fiscal year, down from $78.2 million in the last fiscal year.

Outlook

For fiscal 2024 (ending October 2024), Nordson anticipates adjusted earnings to be in the range of $9.45-$9.65 per share compared with $9.35-$9.75 predicted earlier. Sales are expected to be in the range of $2,665-$2,705 million compared with $2,630-$2,680 anticipated earlier.

Notable Development

In conjunction with its earnings release, Nordson announced that it has completed the acquisition of Atrion.

Based in Allen, TX, Atrion is engaged in manufacturing proprietary medical infusion fluid delivery and niche cardiovascular solutions in the United States. ATRI is comprised of three businesses, namely, Halkey Roberts, Atrion Medical and Quest Medical.

The inclusion of Atrion’s three major businesses — Halkey Roberts, Atrion Medical and Quest Medical — will enable NDSN to expand its medical offerings in the infusion and cardiovascular therapies market.

Zacks Rank & Stocks to Consider

NDSN currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked companies from the same space are discussed below:

Crane Company (CR Quick QuoteCR - Free Report) presently carries a Zacks Rank # 2 (Buy). The company delivered a trailing four-quarter average earnings surprise of 11.2%.

In the past 60 days, the Zacks Consensus Estimate for CR’s 2024 earnings has increased 1.6%.

Ferguson Enterprises Inc. (FERG Quick QuoteFERG - Free Report) currently carries a Zacks Rank of 2. FERG delivered a trailing four-quarter average earnings surprise of 2.6%.

In the past 60 days, the consensus estimate for Ferguson’s fiscal 2025 earnings has increased 0.3%.