Nordson Corporation Braces for Earnings Report Amid Market Challenges
Analysts Forecast a Dip in Q1 Profit as Stock Underperforms
With a market cap of $12.5 billion, Nordson Corporation (NDSN) specializes in engineering and manufacturing products for dispensing adhesives, coatings, polymers, and other fluids. The Westlake, Ohio-based firm offers a wide range of products, from single-use components to automated systems tailored for high-speed production lines. The company is set to release its fiscal Q1 earnings results on Wednesday, Feb. 19.
Analysts predict a profit of $2.08 per share for this quarter, which represents a 5.9% decrease from $2.21 per share in the same quarter last year. Historically, Nordson has shown a strong earnings surprise track record. In fact, it has exceeded Wall Street’s earnings estimates for the last four quarters. In Q4 2024, Nordson’s adjusted EPS reached $2.78, surpassing consensus estimates by 7.3%.
For fiscal 2025, forecasts suggest Nordson will report an EPS of $10.20, reflecting a 4.8% increase from $9.73 in fiscal 2024.
Over the past year, Nordson’s shares have decreased by 13.7%, underperforming the S&P 500 Index, which saw a 25.5% increase, and the Industrial Select Sector SPDR Fund, which rose by 25.1% during the same period.
Following the Q4 earnings release on Dec. 11, which featured an adjusted EPS of $2.78 and revenues of $744.5 million, shares of NDSN fell by 8.2%. Although revenue increased by 3.5% compared to the previous year, organic sales dropped by 3%, primarily due to weaker performance in the polymer processing and precision agriculture sectors. Revenue growth was largely attributed to acquisitions and favorable currency translations.
Additionally, Nordson’s operating margin fell by 170 basis points year-over-year. Despite a 2.6% growth in adjusted EPS, the company’s guidance for Q1 disappointed investors. Nordson estimates Q1 EPS between $1.95 and $2.15, with expected revenues between $615 million and $655 million, both below analyst expectations.
Wall Street analysts express moderate optimism regarding NDSN, citing an overall “Moderate Buy” rating. Among eight analysts covering the stock, four classify it as a “Strong Buy,” and four opt for a “Hold” recommendation. This represents a slightly more positive outlook compared to three months ago when only three analysts suggested a “Strong Buy.”
The average price target for Nordson sits at $258.83, indicating a potential upside of 17.9% from its current trading levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
