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Nordson's (NDSN) Q1 Earnings and Revenues Miss Estimates
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Nordson Corporation (NDSN - Free Report) reported weaker-than-expected first-quarter fiscal 2020 (ended Jan 31, 2020) results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
Adjusted earnings, excluding one-time charges and gains, were 89 cents per share, missing the consensus estimate of $1.05. Also, the bottom line decreased 3.3% from the year-ago figure of 92 cents, primarily on account of to lower sales.
Inside the Headlines
In the reported quarter, Nordson’s sales were $494.9 million, declining 0.6% year over year. The decline was attributable to about 1% decrease in organic volume and 1% adverse impact of unfavorable movements in foreign currencies. Revenues missed the Zacks Consensus Estimate of $499 million. At the quarter end, backlog was $430 million, down 1% year over year.
Nordson Corporation Price, Consensus and EPS Surprise
Region wise, revenues from the United States increased 10.7% year over year to $188.5 million. Revenues generated from Japan decreased 4.8% to $27.6 million and that from Asia Pacific declined 9% to $121.4 million. Revenues from Europe fell 4.7% to $126.4 million and that from the Americas declined 4% to $31.1 million.
The company reports top-line results under three segments — Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. A brief discussion on the fiscal first-quarter segmental performance is provided below:
Adhesive Dispensing Systems’ revenues totaled $207.2 million, decreasing 2% year over year. The decline was due to 1% fall in volume and 1% adverse impact of foreign currency translation.
Advanced Technology Systems’ revenues were $231.1 million, down 1.4% year over year. The fall was on account of 2% decrease in volume and about 1% adverse impact of foreign currency movements, partially offset by contribution of 1% from acquired assets.
Revenues generated from Industrial Coating Systems increased 8.9% year over year to $56.6 million. Volume increased 9% while foreign currency movements had a negative impact of about 1%.
Margin Details
In the quarter, Nordson’s cost of sales increased 1.2% to $231.7 million. It represented 46.8% of sales compared with 46% in the year-ago quarter. Selling and administrative expenses increased 1.8% to $188.1 million. It represented 38% of sales compared with 37.1% a year ago.
Earnings before interest, tax, depreciation and amortization were $100.9 million, decreasing 6.4% year over year.
Operating profit decreased 10.9% to $75.1 million. Margin came in at 15.2% compared with 16.9% in the year-ago quarter.
Balance Sheet & Cash Flow
Exiting the fiscal first quarter, Nordson’s cash and cash equivalents were $115.1 million, down 23.9% from $151.2 million as of Oct 31, 2019. The company’s long-term debt decreased 0.1% to $1,074.3 million on a sequential basis.
In the first three months of fiscal 2020, the company generated net cash of $116.3 million from operating activities compared with $56.8 million in the year-ago period.
In the reported quarter, free cash flow was roughly $102.5 million, up from around $43 million a year ago. Capital spent on the addition of property, plant and equipment was $13.9 million. During the quarter, the company paid out dividends of $21.9 million.
Outlook
For fiscal 2020 (ending October 2020), the company anticipates organic sales to grow in the range of 1-3%.
Graco delivered positive earnings surprise of 0.40%, on average, in the trailing four quarters.
Dover delivered positive earnings surprise of 5.36%, on average, in the trailing four quarters.
Cintas pulled off positive earnings surprise of 8.50%, on average, in the trailing four quarters.
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Nordson's (NDSN) Q1 Earnings and Revenues Miss Estimates
Nordson Corporation (NDSN - Free Report) reported weaker-than-expected first-quarter fiscal 2020 (ended Jan 31, 2020) results, wherein both earnings and revenues missed the Zacks Consensus Estimate.
Adjusted earnings, excluding one-time charges and gains, were 89 cents per share, missing the consensus estimate of $1.05. Also, the bottom line decreased 3.3% from the year-ago figure of 92 cents, primarily on account of to lower sales.
Inside the Headlines
In the reported quarter, Nordson’s sales were $494.9 million, declining 0.6% year over year. The decline was attributable to about 1% decrease in organic volume and 1% adverse impact of unfavorable movements in foreign currencies. Revenues missed the Zacks Consensus Estimate of $499 million. At the quarter end, backlog was $430 million, down 1% year over year.
Nordson Corporation Price, Consensus and EPS Surprise
Nordson Corporation price-consensus-eps-surprise-chart | Nordson Corporation Quote
Region wise, revenues from the United States increased 10.7% year over year to $188.5 million. Revenues generated from Japan decreased 4.8% to $27.6 million and that from Asia Pacific declined 9% to $121.4 million. Revenues from Europe fell 4.7% to $126.4 million and that from the Americas declined 4% to $31.1 million.
The company reports top-line results under three segments — Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. A brief discussion on the fiscal first-quarter segmental performance is provided below:
Adhesive Dispensing Systems’ revenues totaled $207.2 million, decreasing 2% year over year. The decline was due to 1% fall in volume and 1% adverse impact of foreign currency translation.
Advanced Technology Systems’ revenues were $231.1 million, down 1.4% year over year. The fall was on account of 2% decrease in volume and about 1% adverse impact of foreign currency movements, partially offset by contribution of 1% from acquired assets.
Revenues generated from Industrial Coating Systems increased 8.9% year over year to $56.6 million. Volume increased 9% while foreign currency movements had a negative impact of about 1%.
Margin Details
In the quarter, Nordson’s cost of sales increased 1.2% to $231.7 million. It represented 46.8% of sales compared with 46% in the year-ago quarter. Selling and administrative expenses increased 1.8% to $188.1 million. It represented 38% of sales compared with 37.1% a year ago.
Earnings before interest, tax, depreciation and amortization were $100.9 million, decreasing 6.4% year over year.
Operating profit decreased 10.9% to $75.1 million. Margin came in at 15.2% compared with 16.9% in the year-ago quarter.
Balance Sheet & Cash Flow
Exiting the fiscal first quarter, Nordson’s cash and cash equivalents were $115.1 million, down 23.9% from $151.2 million as of Oct 31, 2019. The company’s long-term debt decreased 0.1% to $1,074.3 million on a sequential basis.
In the first three months of fiscal 2020, the company generated net cash of $116.3 million from operating activities compared with $56.8 million in the year-ago period.
In the reported quarter, free cash flow was roughly $102.5 million, up from around $43 million a year ago. Capital spent on the addition of property, plant and equipment was $13.9 million. During the quarter, the company paid out dividends of $21.9 million.
Outlook
For fiscal 2020 (ending October 2020), the company anticipates organic sales to grow in the range of 1-3%.
Zacks Rank & Other Key Picks
Nordson currently carries a Zacks Rank #2(Buy).
Some other top-ranked stocks from the Zacks Industrial Products sector are Graco Inc. (GGG - Free Report) , Dover Corporation (DOV - Free Report) and Cintas Corporation (CTAS - Free Report) . While Graco sports a Zacks Rank #1 (Strong Buy), Dover and Cintas carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Graco delivered positive earnings surprise of 0.40%, on average, in the trailing four quarters.
Dover delivered positive earnings surprise of 5.36%, on average, in the trailing four quarters.
Cintas pulled off positive earnings surprise of 8.50%, on average, in the trailing four quarters.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>