Nordson's Q2 Earnings & Revenues Surpass Estimates, Increase Y/Y

Nordson Corporation’s NDSN second-quarter fiscal 2025 (ended April 30, 2025) adjusted earnings of $2.42 per share surpassed the Zacks Consensus Estimate of $2.36. The bottom line increased 3% year over year. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)Quarterly Results of NDSNNordson’s revenues were $682.9 million, up 5% from the year-ago fiscal quarter’s number, driven by strength in the Advanced Technology Solutions segment and contributions from acquired assets. Revenues beat the consensus estimate of $674 million.Organic sales declined 2.4% year over year due to softness in the polymer processing and industrial coatings product lines. Acquisitions had a positive impact of 7.8% while foreign currency translation had a negative impact of 0.4%. The company’s backlog increased about 5% on a sequential basis.Nordson Corporation Price, Consensus and EPS Surprise Nordson Corporation price-consensus-eps-surprise-chart | Nordson Corporation QuoteOn a regional basis, revenues from the Asia Pacific region were $218 million, up 25.2% year over year. Revenues generated from Europe decreased 5.3% to $172.5 million, while the metric in the Americas decreased 0.7% to $292.5 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 $318.8 million, down 7.6% from the year-ago fiscal quarter’s level. The segment contributed 46.7% to NDSN’s top line in the quarter.Organic sales decreased 6.9% from the year-ago fiscal quarter’s level, while foreign currency translation had a negative impact of 0.7%.Revenues from Medical and Fluid Solutions amounted to $202.8 million, up 20% from the year-ago fiscal quarter’s level. The segment contributed 29.7% to NDSN’s top line.Organic sales decreased 10% from the year-ago fiscal quarter’s level. Acquisitions boosted sales by 30% while foreign currency translation had no impact.Advanced Technology Solutions’ sales were $161.3 million, up 18% from the year-ago fiscal quarter’s figure. The metric represented 23.6% of Nordson’s revenues in the period.Organic sales increased 18.1% from the year-ago fiscal quarter’s level. Foreign currency translation had a negative impact of 0.1%.Nordson’s Margin ProfileNordson’s cost of sales increased 8.5% from the year-ago fiscal quarter’s level to $309 million. Gross profit was $373.9 million, up 2.2% from the year-ago fiscal quarter’s level. The gross margin decreased 150 basis points (bps) to 54.7%.Selling and administrative expenses increased 4% year over year to $205.2 million. Adjusted EBITDA was $217.2 million (up 6.8% year over year), the margin being 32%. Operating income was $168.8 million, flat year over year. Operating margin of 24.7% decreased 120 bps from the year-ago period.Net interest expenses totaled $26 million, reflecting a 39.8% increase from the year-ago fiscal quarter’s level.Nordson’s Balance Sheet & Cash FlowAt the time of exiting the second quarter of fiscal 2025, Nordson’s cash and cash equivalents were $130.2 million compared with $116 million recorded at the end of fiscal 2024. Long-term debt was $2.12 billion compared with $2.10 billion recorded at the end of fiscal 2024.In the first six months of fiscal 2025, NDSN generated net cash of $278.3 million from operating activities, down 5.7% from the last fiscal year period’s tally. Capital invested in purchasing property, plant and equipment totaled $37.4 million, up 70.8% from the year-ago fiscal period.NDSN’s Dividends/Share BuybackIn the first six months of fiscal 2025, Nordson paid out dividends of $88.9 million, up 14.3% from $77.8 million in the previous fiscal year period.Treasury purchase shares amounted to $146.3 million, up from $7.9 million in the year-ago period.NDSN’s OutlookFor the third quarter of fiscal 2025 (ending July 2025), it projects sales to be in the range of $710-$750 million, with adjusted earnings of $2.55-$2.75 per share.NDSN’s Zacks Rank and Key PicksThe company currently carries a Zacks Rank #3 (Hold). AptarGroup, Inc. ATR presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.ATR delivered a trailing four-quarter average earnings surprise of 7.3%. In the past 60 days, the consensus estimate for AptarGroup’s 2025 earnings has increased 5.4%.The Gorman-Rupp Company GRC currently carries a Zacks Rank #2 (Buy). GRC delivered a trailing four-quarter average earnings surprise of 2.4%. In the past 60 days, the Zacks Consensus Estimate for Gorman-Rupp’s 2025 earnings has increased 0.5%.Broadwind Energy BWEN currently carries a Zacks Rank of 2. BWEN delivered a trailing four-quarter average earnings surprise of 61.1%. In the past 60 days, the consensus estimate for Broadwind Energy’s 2025 earnings has increased 14.3%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Nordson Corporation (NDSN): Free Stock Analysis Report AptarGroup, Inc. (ATR): Free Stock Analysis Report Gorman-Rupp Company (The) (GRC): Free Stock Analysis Report Broadwind Energy, Inc. (BWEN): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks