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Nordson's Q1 Earnings & Revenues Miss Estimates, Decrease Y/Y
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Nordson Corporation’s (NDSN - Free Report) first-quarter fiscal 2025 (ended Jan. 31, 2025) adjusted earnings of $2.06 per share missed the Zacks Consensus Estimate of $2.08. The bottom line decreased 6.8% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Quarterly Results of NDSN
Nordson’s revenues were $615.4 million, down 2.8% from the year-ago fiscal quarter’s number, driven by weakness in the Industrial Precision Solutions and Advanced Technology Solutions segments. Revenues missed the consensus estimate of $636 million.
Organic sales declined 9.4% year over year due to softness in the polymer processing and precision agriculture product lines. Acquisitions had a positive impact of 8.4% while foreign currency translation had a negative impact of 8.4%. Exiting the fiscal year, the company’s backlog totaled $670 million.
On a regional basis, revenues from the Asia Pacific region were $179.8 million, flat year over year. Revenues generated from Europe decreased 6.4% to $167.8 million while the metric in the Americas decreased 2.3% to $267.8 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 $300 million, down 11% from the year-ago fiscal quarter’s level. The segment contributed 48.8% to NDSN’s top line in the quarter.
Organic sales decreased 8% from the year-ago fiscal quarter’s level while foreign currency translation had a negative impact of 2.6%.
Revenues from Medical and Fluid Solutions amounted to $193.6 million, up 21.4% from the year-ago fiscal quarter’s level. The segment contributed 31.5% to NDSN’s top line.
Organic sales decreased 11.2% from the year-ago fiscal quarter’s level. Acquisitions boosted sales by 33.4% while foreign currency translation had a negative impact of 0.8%.
Advanced Technology Solutions’ sales were $121.4 million, up 4.7% from the year-ago fiscal quarter’s figure. The metric represented 19.7% of Nordson’s revenues in the period.
Organic sales decreased 9.6% from the year-ago fiscal quarter’s level. Foreign currency translation had a negative impact of 1.1%.
Nordson’s cost of sales decreased 1.8% from the year-ago fiscal quarter’s level to $279.5 million. Gross profit was $335.9 million, down 3.6% from the year-ago fiscal quarter’s level. The gross margin decreased 400 basis points (bps) to 54.6%.
Selling and administrative expenses increased 3.2% year over year to $194.9 million. Adjusted EBITDA was $188.1 million, the margin being 30.6%. Operating income was $140.9 million, down 11.6% year over year. Operating margin of 22.9% decreased 230 bps from the year-ago period.
Net interest expenses totaled $25.6 million, reflecting a 25.6% increase from the year-ago fiscal quarter’s level.
Nordson’s Balance Sheet & Cash Flow
At the time of exiting the first quarter of fiscal 2025, Nordson’s cash and cash equivalents were $130.4 million compared with $116 million recorded at the end of fiscal 2024. Long-term debt was $2.09 billion compared with $2.1 billion recorded at the end of fiscal 2024.
In the first three months of fiscal 2025, NDSN generated net cash of $159.1 million from operating activities, down 7.7% from the last fiscal year period’s tally. Capital invested in purchasing property, plant and equipment totaled $21.4 million, up 184.2% from the year-ago fiscal period.
NDSN’s Dividends/Share Buyback
In the first three months of fiscal 2025, Nordson paid out dividends of $44.6 million, up 14.8% from $38.9 million in the previous fiscal year.
Treasury purchase shares amounted to $60.1 million, up from $7.4 million in the year ago period.
NDSN’s Outlook
For the second quarter of fiscal 2025 (ending April 2025), it projects sales to be in the range of $650-$690 million, with adjusted earnings of $2.30-$2.50 per share.
Tetra Tech, Inc. (TTEK - Free Report) reported earnings of 35 cents per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of 34 cents. This compares with earnings of 28 cents per share a year ago.
Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.
Waste Management, Inc. (WM - Free Report) reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.
WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.
Packaging Corporation of America (PKG - Free Report) reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.
Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.
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Nordson's Q1 Earnings & Revenues Miss Estimates, Decrease Y/Y
Nordson Corporation’s (NDSN - Free Report) first-quarter fiscal 2025 (ended Jan. 31, 2025) adjusted earnings of $2.06 per share missed the Zacks Consensus Estimate of $2.08. The bottom line decreased 6.8% year over year.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Quarterly Results of NDSN
Nordson’s revenues were $615.4 million, down 2.8% from the year-ago fiscal quarter’s number, driven by weakness in the Industrial Precision Solutions and Advanced Technology Solutions segments. Revenues missed the consensus estimate of $636 million.
Organic sales declined 9.4% year over year due to softness in the polymer processing and precision agriculture product lines. Acquisitions had a positive impact of 8.4% while foreign currency translation had a negative impact of 8.4%. Exiting the fiscal year, the company’s backlog totaled $670 million.
On a regional basis, revenues from the Asia Pacific region were $179.8 million, flat year over year. Revenues generated from Europe decreased 6.4% to $167.8 million while the metric in the Americas decreased 2.3% to $267.8 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 $300 million, down 11% from the year-ago fiscal quarter’s level. The segment contributed 48.8% to NDSN’s top line in the quarter.
Organic sales decreased 8% from the year-ago fiscal quarter’s level while foreign currency translation had a negative impact of 2.6%.
Revenues from Medical and Fluid Solutions amounted to $193.6 million, up 21.4% from the year-ago fiscal quarter’s level. The segment contributed 31.5% to NDSN’s top line.
Organic sales decreased 11.2% from the year-ago fiscal quarter’s level. Acquisitions boosted sales by 33.4% while foreign currency translation had a negative impact of 0.8%.
Advanced Technology Solutions’ sales were $121.4 million, up 4.7% from the year-ago fiscal quarter’s figure. The metric represented 19.7% of Nordson’s revenues in the period.
Organic sales decreased 9.6% from the year-ago fiscal quarter’s level. Foreign currency translation had a negative impact of 1.1%.
Nordson Corporation Price and EPS Surprise
Nordson Corporation price-eps-surprise | Nordson Corporation Quote
Nordson’s Margin Profile
Nordson’s cost of sales decreased 1.8% from the year-ago fiscal quarter’s level to $279.5 million. Gross profit was $335.9 million, down 3.6% from the year-ago fiscal quarter’s level. The gross margin decreased 400 basis points (bps) to 54.6%.
Selling and administrative expenses increased 3.2% year over year to $194.9 million. Adjusted EBITDA was $188.1 million, the margin being 30.6%. Operating income was $140.9 million, down 11.6% year over year. Operating margin of 22.9% decreased 230 bps from the year-ago period.
Net interest expenses totaled $25.6 million, reflecting a 25.6% increase from the year-ago fiscal quarter’s level.
Nordson’s Balance Sheet & Cash Flow
At the time of exiting the first quarter of fiscal 2025, Nordson’s cash and cash equivalents were $130.4 million compared with $116 million recorded at the end of fiscal 2024. Long-term debt was $2.09 billion compared with $2.1 billion recorded at the end of fiscal 2024.
In the first three months of fiscal 2025, NDSN generated net cash of $159.1 million from operating activities, down 7.7% from the last fiscal year period’s tally. Capital invested in purchasing property, plant and equipment totaled $21.4 million, up 184.2% from the year-ago fiscal period.
NDSN’s Dividends/Share Buyback
In the first three months of fiscal 2025, Nordson paid out dividends of $44.6 million, up 14.8% from $38.9 million in the previous fiscal year.
Treasury purchase shares amounted to $60.1 million, up from $7.4 million in the year ago period.
NDSN’s Outlook
For the second quarter of fiscal 2025 (ending April 2025), it projects sales to be in the range of $650-$690 million, with adjusted earnings of $2.30-$2.50 per share.
NDSN’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Tetra Tech, Inc. (TTEK - Free Report) reported earnings of 35 cents per share in the first quarter of fiscal 2025 (ended December 2024), which beat the Zacks Consensus Estimate of 34 cents. This compares with earnings of 28 cents per share a year ago.
Tetra posted revenues of $1.2 billion for the quarter ended December 2024, surpassing the consensus estimate by 8.85%. This compares with year-ago revenues of $1.02 billion. The company topped the consensus estimate for revenues in each of the last four quarters.
Waste Management, Inc. (WM - Free Report) reported earnings of $1.70 per share in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $1.79. This compares with earnings of $1.74 per share a year ago.
WM reported revenues of $5.89 billion for the quarter ended December 2024, surpassing the consensus estimate by 0.18%. This compares with year-ago revenues of $5.22 billion. The company topped the consensus estimate for revenues two times in the last four quarters.
Packaging Corporation of America (PKG - Free Report) reported adjusted earnings per share of $2.47 in the fourth quarter of 2024, which missed the Zacks Consensus Estimate of $2.51 by a margin of 2%. The bottom line matched PKG’s guidance and grew 16% year over year.
Sales in the fourth quarter rose 10.7% year over year to $2.15 billion due to higher volumes and price/mix in both segments. The top line beat the consensus estimate of $2.13 billion.