- Nordson forecasts 3Q sales figure, falling short of estimates. The projected range is $645 million to $670 million, while the estimate was $705.3 million.
- The company also predicts an adjusted EPS of $2.25 to $2.40, falling short of the estimated $2.68.
- For 2Q, Nordson reported an EPS of $2.05, less than the $2.21 year on year, and also less than the estimated $2.31.
- Sales for the 2Q totalled $650.6 million, marginally higher than last year’s value of $650.2 million, but lower than the $661.4 million estimate.
- The Industrial Precision Solutions segment saw a 9.3% increase in sales with $367.0 million, beating the $362 million estimate.
- However, the Advanced Technology Solutions segment saw a 22% decrease in sales, reporting at $114.7 million against an estimate of $126.5 million.
- Total operating profit was recorded as $168.6 million, a decrease of 2.3% year on year, and lower than the $169.3 million estimate.
- Cash and cash equivalents marked a fall of 2.8% year on year at $125.4 million, significantly lower than the $196.2 million estimate.
- Nagarajan, reflecting on the outlook stated that positive indicators in the electronics end markets have not yet converted into orders to meet the previously issued guidance.
- The Advanced Technology Solutions segment continues to be impacted by the electronics cycle, despite positive early indicators.
A look at Nordson Corp Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Nordson Corp seems to have a promising long-term outlook. With a strong Momentum score of 5, the company appears to be performing well in terms of market trends and investor sentiment. This suggests that Nordson Corp is experiencing positive momentum that could bode well for its future growth.
Additionally, Nordson Corp has scored a solid 4 in Growth, indicating potential for expansion and development in the future. Coupled with a Resilience score of 3, the company seems to have a good level of stability and ability to withstand challenges. While Value and Dividend scores are at 2, these factors could still be areas for improvement to enhance Nordson Corp‘s overall performance.
Summary: Nordson Corporation is a global company specializing in designing, manufacturing, and marketing systems for applying adhesives, sealants, and coatings to consumer and industrial products. The company’s products include electronic controls tailored for precise material application, serving customers worldwide.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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