Nordson Corporation Reports Record First Quarter Fiscal 2026 Results and Increases Full Year Guidance First Quarter Highlights: First Quarter Segment Results Industrial Precision Solutions sales of $327 million increased 9% from the prior year, inclusive of an organic sales increase of 3% and favorable currency translation of 6%. The organic sales increase was driven by balanced growth across most product lines, with particular strength in Asia Pacific markets. EBITDA in the quarter was $110 million, or 34% ...

Core Insights - Nordson (NDSN) is expected to report quarterly earnings of $2.36 per share, reflecting a 14.6% increase year-over-year, with revenues forecasted at $650.83 million, a 5.8% increase from the previous year [1] Earnings Estimates - Revisions to earnings estimates are crucial indicators for predicting investor actions regarding the stock, with empirical research showing a strong correlation between earnings estimate trends and short-term stock performance [2] - Analysts have maintained the consensus EPS estimate for Nordson over the last 30 days, indicating stability in their assessments [1] Revenue Forecasts - Analysts predict 'Net Sales- Industrial Precision Solutions' to be $308.50 million, a year-over-year increase of 2.7% [4] - 'Net Sales- Advanced Technology Solutions' is expected to reach $138.00 million, reflecting a 13.7% increase from the same quarter last year [4] - 'Net Sales- Medical and Fluid Solutions' is forecasted at $204.00 million, indicating a 5.4% increase year-over-year [4] Operating Profit Estimates - 'Operating profit (loss)- Advanced Technology Solutions' is projected to be $24.00 million, up from $18.12 million in the same quarter last year [5] - 'Operating profit (loss)- Medical and Fluid Solutions' is expected to reach $58.50 million, compared to $40.94 million a year ago [5] - 'Operating profit (loss)- Industrial Precision Solutions' is estimated at $102.00 million, an increase from $95.71 million in the previous year [6] Stock Performance - Over the past month, Nordson shares have increased by 10.5%, while the Zacks S&P 500 composite has decreased by 0.3%, indicating strong relative performance [6] - Nordson holds a Zacks Rank 3 (Hold), suggesting that its performance is likely to align with the overall market in the near term [6]

Group 1 - The article discusses the investment potential of Nordson Corp. (NDSN), highlighting that its premium valuation multiple has diminished over time, making it an attractive option for investors [1] - The company is characterized as a long-term growth compounder, indicating its ability to generate consistent growth over an extended period [1] - The investment group "Value In Corporate Events" focuses on identifying opportunities in major corporate events such as IPOs, mergers & acquisitions, and earnings reports, providing members with actionable insights [1]

Group 1: Company Overview - Nordson (NDSN) is a member of the Industrial Products sector, which includes 180 individual stocks and currently holds a Zacks Sector Rank of 8 [2] - Nordson belongs to the Manufacturing - General Industrial industry, which consists of 43 individual stocks and is currently ranked 78 in the Zacks Industry Rank [5] Group 2: Performance Metrics - Nordson has returned approximately 17.5% since the beginning of the calendar year, outperforming the average gain of 13.1% for Industrial Products stocks [4] - The consensus EPS estimate for Nordson's full-year earnings has increased by 2.3% over the past three months, indicating improved analyst sentiment and a stronger earnings outlook [3] Group 3: Comparative Analysis - Another stock in the Industrial Products sector, NN Inc. (NNBR), has also outperformed the sector with a year-to-date increase of 20.3% [4] - The Metal Products - Procurement and Fabrication industry, to which NN Inc. belongs, is currently ranked 14 and has gained 7.4% year to date [6]

Core Viewpoint - Momentum investing focuses on following a stock's recent price trends, aiming to buy high and sell higher, with the expectation that established trends will continue [1] Company Overview: Nordson (NDSN) - Nordson currently holds a Momentum Style Score of B, indicating a positive outlook based on price changes and earnings estimate revisions [2] - The company has a Zacks Rank of 2 (Buy), suggesting strong potential for outperformance in the market [3] Price Performance - Over the past week, NDSN shares increased by 1.2%, while the Zacks Manufacturing - General Industrial industry remained flat [5] - In a longer timeframe, NDSN's shares rose by 10.39% over the past month, outperforming the industry's 4.98% [5] - Over the last quarter, NDSN shares increased by 17.66%, and over the past year, they rose by 28.11%, compared to the S&P 500's gains of 1.21% and 16.64%, respectively [6] Trading Volume - NDSN's average 20-day trading volume is 410,118 shares, which serves as a baseline for price-to-volume analysis [7] Earnings Outlook - In the past two months, four earnings estimates for NDSN have been revised upwards, while none have been revised downwards, leading to an increase in the consensus estimate from $10.94 to $11.19 [9] - For the next fiscal year, one estimate has moved upwards with no downward revisions [9] Conclusion - Given the positive momentum indicators and earnings outlook, NDSN is positioned as a 2 (Buy) stock with a Momentum Score of B, making it a strong candidate for near-term investment [11]

Industry Overview - The U.S. manufacturing sector is showing signs of recovery after over three years of struggle, with the ISM Manufacturing PMI rising to 52.6 in January from 47.9 in December, marking the highest reading since 2022 and the first expansion in 12 months [1][3][9] - The New Orders Index increased by 9.7% to 57.1%, the highest level since February 2022, while the Production Index rose to 55.9%, a 5.2% increase from December [4][9] Economic Context - Inflation has eased over the past two quarters, and the Federal Reserve cut interest rates by 75 basis points last year, which has reduced borrowing costs and price pressures, thereby driving demand [5] - The Federal Reserve maintained interest rates in the range of 3.5% to 3.75% at the January meeting, indicating openness to further rate cuts depending on inflation trends [6] Investment Opportunities - Four stocks from the manufacturing sector are highlighted for investment: ATS Corporation, Nordson Corporation, Donaldson Company, Inc., and RBC Bearings Incorporated, all carrying a Zacks Rank 2 (Buy) [2] - ATS Corporation is expected to have an earnings growth of 18.9% for the current year, with a 0.8% improvement in the Zacks Consensus Estimate over the past 60 days [7] - Nordson Corporation anticipates a 9.3% earnings growth for the current year, with a 2.3% increase in the Zacks Consensus Estimate [10][11] - Donaldson Company, Inc. expects a 10.1% earnings growth for the current year, with a 0.7% improvement in the Zacks Consensus Estimate [12] - RBC Bearings Incorporated projects an earnings growth of 18.6% for the current year, with a 0.3% increase in the Zacks Consensus Estimate [13]

Core Insights - Nordson Corporation (NASDAQ:NDSN) is recognized for its long-standing commitment to dividend growth, having increased its dividend for 62 consecutive years, making it one of the most reliable dividend growth stocks in the market [2] - The company reported a revenue of $752 million for the fourth quarter of 2025, reflecting a 1% increase year-over-year, and has a backlog of approximately $600 million, which is a 5% increase from the previous year when excluding divested operations [3] - For fiscal 2026, Nordson anticipates sales growth between 1% and 6% compared to fiscal 2025, with adjusted earnings per share expected to rise by 6% to 12% [4] Financial Performance - In Q4 2025, Nordson's revenue reached $752 million, marking a 1% increase from the previous year [3] - The company expects first-quarter revenue for fiscal 2026 to be between $630 million and $670 million, with adjusted earnings projected at $2.25 to $2.45 per share [4] Strategic Focus - Nordson specializes in designing and manufacturing precision technologies for various end markets, emphasizing engineered solutions and long-term value creation [5] - The company maintains a disciplined approach to capital allocation, balancing reinvestment in the business with consistent shareholder returns [2]

Core Viewpoint - Nordson Corporation (NDSN) is a precision technology and industrial engineering company with a market cap of $15.2 billion, specializing in equipment and systems for dispensing and applying various fluids across multiple industries [1] Financial Performance - Analysts expect NDSN to report a profit of $2.36 per share for fiscal Q1 2026, reflecting a 14.6% increase from $2.06 per share in the same quarter last year [2] - For fiscal 2025, the expected profit is $10.19 per share, a 9.3% decrease from $10.24 per share in fiscal 2024, with further growth projected to $12.11 per share in fiscal 2027, an 8.2% year-over-year increase [3] Stock Performance - NDSN shares have increased by 27.2% over the past 52 weeks, outperforming the S&P 500 Index's 16.9% return and the Industrial Select Sector SPDR Fund's 21.9% increase during the same period [4] Recent Developments - On December 10, NDSN shares rose 1.2% following the release of its fiscal 2025 fourth-quarter results, which showed a 1% year-over-year sales increase to $752 million and adjusted earnings per share of $3.03, up approximately 9% year-over-year [5] - The company enters fiscal 2026 with a backlog of about $600 million, a 5% increase from the previous year, and projects full-year sales between $2.83 billion and $2.95 billion, with adjusted earnings of $10.80 to $11.50 per share [6] - For the first quarter of fiscal 2026, NDSN expects sales of $630 million to $670 million and adjusted EPS of $2.25 to $2.45, with management confident in growth supported by improving end markets and its Ascend Strategy [6]

Core Insights - The focus on long-term investments in companies that consistently grow earnings and dividends is emphasized, contrasting with the market's obsession with short-term gains [1] - Dividend Kings, particularly those with accelerating dividend growth and improving profitability, are highlighted as strong investment opportunities [2] Company Analysis - Nordson Corp is identified as a leader in precision manufacturing, serving industries such as aerospace, medical, and electronics [6] - The company's recent financial performance shows a 1% year-over-year increase in sales to $752 million, a 24% increase in net income to $152 million, and a basic EPS growth of 4.77% [7] - Nordson Corp offers a forward annual dividend of $3.28, resulting in a yield of approximately 1.2%, with a remarkable 5-year dividend growth rate exceeding 106% [7] Analyst Ratings - A consensus rating from 11 analysts gives Nordson Corp a "Moderate Buy" status, with potential upside of up to 8% if the stock reaches its projected high of $295 within the next 12 months [8]

Core Viewpoint - Investors in the Manufacturing - General Industrial sector should consider Mueller Water Products (MWA) and Nordson (NDSN) for potential value opportunities [1] Group 1: Company Rankings and Outlook - Both MWA and NDSN currently hold a Zacks Rank of 2 (Buy), indicating a positive earnings outlook supported by favorable analyst estimate revisions [3] - The Zacks Rank system emphasizes companies with improving earnings forecasts, which is a key interest for value investors [2] Group 2: Valuation Metrics - MWA has a forward P/E ratio of 17.90, while NDSN has a higher forward P/E of 23.35, suggesting MWA may be more attractively priced [5] - MWA's PEG ratio is 1.19, indicating a better valuation relative to its expected EPS growth compared to NDSN's PEG ratio of 1.80 [5] - MWA's P/B ratio stands at 4.02, compared to NDSN's P/B of 4.82, further supporting MWA's stronger valuation metrics [6] Group 3: Value Grades - MWA has received a Value grade of B, while NDSN has a Value grade of D, indicating that MWA is currently viewed as the superior value option [6][7]