Nordson Delivers Strong Q2 Results, Shares Pop 4%

Nordson Corp (NDSN) shares rose 4.2% in Monday’s extended trading session after the company announced strong fiscal second quarter results. The company designs and manufactures dispensing equipment for consumer and industrial adhesives, sealants and coatings.

The company’s revenues of $590 million surpassed the Street’s estimates of $547.98 million and jumped 11% from the year-ago period. The increase was attributed to robust growth in electronics and consumer non-durable end markets. Strength in medical and industrial end markets also drove growth.

Earnings came in at $2.12 per share, beating the consensus estimates of $1.64 per share, and soared 34% year-over-year.

Nordson president and CEO Sundaram Nagarajan said, “Based on our backlog and order trends, we expect this strength to continue and are raising our sales and earnings guidance for the full year fiscal 2021. Our priorities remain consistent – protect the health and safety of our employees, fully participate in the market recovery by meeting the needs of our customers, and deploy the Ascend Strategy.”

He added, “With this clear focus, we will continue to progress toward our long-term objectives of delivering top-tier growth with leading margins and returns.” (See Nordson stock analysis on TipRanks)

For full-year fiscal 2021, the company expects sales growth at approximately 8% to 10% over fiscal 2020. Earnings per share are expected to land in the range of $7.20 to $7.50, representing an increase of 31% to 37% year-over-year. The consensus estimate for the same is pegged at $6.62 per share.

On May 4, Oppenheimer analyst Christopher Glynn maintained a Hold rating.

Glynn commented, “NDSN’s bedrock core dispense technology in precision hot melt has long since driven migration to application expertise in cold materials dispense, and other fluid management applications (now including medical interventional/minimally invasive components and pharmaceuticals production applications), serving diverse markets from a few core technology platforms.”

The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating. That’s based on 3 Buys versus 2 Holds. The average analyst price target of $232.25 implies 14.7% upside potential to current levels. Shares have increased 14.1% over the past year.

Nordson scores a 5 of 10 from TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market averages.

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