Core Viewpoint - Nordson Corporation is set to release its second-quarter fiscal 2025 results, with expectations of mixed performance due to various market challenges and recent acquisitions [1][6]. Group 1: Earnings Expectations - The consensus estimate for Nordson's fiscal second-quarter revenues is $673.6 million, reflecting a 3.5% increase from the previous year [6]. - The adjusted earnings estimate is $2.36 per share, indicating a 0.9% decrease compared to the same quarter last year [6]. - The company has a history of earnings surprises, averaging a 2.9% beat, although the last quarter's earnings missed the consensus estimate by 1% [1][6]. Group 2: Segment Performance - The Industrial Precision Solutions segment is expected to show weak results, with revenues projected at $323 million, a 12% decrease from the prior year [2]. - The Medical and Fluid Solutions segment is likely to be impacted by decreased demand due to destocking, while the Advanced Technology Solutions segment may face challenges from softness in electronics processing and x-ray product lines [3]. - The overall cost of sales is anticipated to rise due to high input costs, which may negatively affect profit margins [3]. Group 3: Acquisitions and Growth Opportunities - The acquisition of Atrion Corporation is expected to enhance Nordson's medical offerings in infusion and cardiovascular therapies, potentially supporting overall results [5]. - The acquisition of ARAG Group in August 2023 is anticipated to strengthen Nordson's capabilities in precision dispensing technology and expand its presence in the precision agriculture market [5]. Group 4: External Factors - Nordson's international operations expose it to risks from adverse currency fluctuations, which may impact performance [4].

Core Insights - Analysts expect Nordson (NDSN) to report quarterly earnings of $2.36 per share, reflecting a year-over-year increase of 0.9% [1] - Revenue projections stand at $673.58 million, indicating a 3.5% increase from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, suggesting stability in analysts' assessments [1] Revenue Estimates - 'Net Sales- Industrial Precision Solutions' is projected at $322.96 million, representing a year-over-year decline of 12% [3] - 'Net Sales- Advanced Technology Solutions' is expected to reach $142.32 million, showing a significant increase of 24.1% from the prior year [4] - 'Net Sales- Medical and Fluid Solutions' is estimated at $204.99 million, reflecting a growth of 21.3% compared to the previous year [4] Operating Profit Estimates - The consensus for 'Operating profit (loss)- Advanced Technology Solutions' is $27.56 million, up from $18.78 million year-over-year [5] - Analysts estimate 'Operating profit (loss)- Medical and Fluid Solutions' to be $55.41 million, compared to $48.99 million in the same quarter last year [5] - 'Operating profit (loss)- Industrial Precision Solutions' is projected at $108.47 million, down from $117.83 million reported in the same quarter last year [6] Stock Performance - Nordson shares have increased by 3.4% over the past month, while the Zacks S&P 500 composite has risen by 10.7% [6] - The company holds a Zacks Rank 3 (Hold), indicating it is expected to closely follow overall market performance in the near term [6]

Company Overview - Nordson Corporation (NDSN) shares increased by 11.8% to close at $187.29, following a significant trading volume compared to normal sessions, despite an 18.7% loss over the past four weeks [1] - The company is experiencing strong momentum in its optical sensors and measurement & control businesses, driven by robust customer demand in nonwovens, packaging, consumer non-durable, and optical sensors product lines [1] Earnings Expectations - Nordson is expected to report quarterly earnings of $2.36 per share, reflecting a year-over-year increase of 0.9%, with revenues projected at $673.58 million, up 3.5% from the previous year [2] - The consensus EPS estimate for Nordson has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [3] Industry Context - Nordson is part of the Zacks Manufacturing - General Industrial industry, where another company, Gates Industrial (GTES), saw a 15.3% increase in its stock price, closing at $17.94, despite a -20.2% return over the past month [3] - Gates Industrial's consensus EPS estimate for its upcoming report is $0.33, representing a 6.5% increase from the previous year, with its Zacks Rank also at 3 (Hold) [4]

Core Insights - Nordson Corporation (NDSN) is benefiting from its diversified business structure, which helps to offset weaknesses in specific markets with strengths in others, particularly in optical sensors and measurement & control businesses [1] - The company anticipates sales in the range of $650-$690 million for Q2 fiscal 2025, indicating a year-over-year increase of 2.9% at the midpoint [1] Business Expansion - NDSN's product portfolio has been solidified through asset acquisitions, which contributed to an 8% increase in total revenues in Q1 fiscal 2025 [2] - The acquisition of Atrion Corporation in August 2024 is expected to enhance NDSN's medical offerings in infusion and cardiovascular therapies, providing significant operational synergies [2] - The acquisition of ARAG Group in August 2023 expanded Nordson's capabilities in precision dispensing technology, allowing entry into the precision agriculture market [3] Shareholder Returns - The company is committed to rewarding shareholders, having paid out $44.6 million in dividends in Q1 fiscal 2025, a 14.8% increase year-over-year [4] - Nordson repurchased $60.1 million in treasury shares during the same period and increased its dividend by 15% to 78 cents per share, marking the 61st consecutive year of dividend increases [4] Segment Weaknesses - NDSN is facing challenges in its segments, with lower demand in polymer processing and industrial coatings affecting the Industrial Precision Solutions segment [5] - The Medical and Fluid Solutions segment is negatively impacted by decreased demand for medical interventional products due to ongoing destocking [5] - The Advanced Technology Solutions segment is experiencing softness in electronics processing and x-ray product lines [5] Cost Pressures - The company is dealing with rising operating costs, with selling and administrative expenses increasing by 3.2% year-over-year in Q1 fiscal 2025 [6] - Selling and administrative expenses as a percentage of total revenues rose by 190 basis points to 31.7%, adversely affecting the operating margin, which declined by 230 basis points year-over-year to 22.9% [6]

Company Overview - Investors in Nordson Corporation (NDSN) should monitor the stock closely due to significant activity in the options market, particularly the Jun 20, 2025 $130.00 Call, which has shown some of the highest implied volatility among equity options [1] Implied Volatility Insights - Implied volatility indicates the market's expectations for future price movements, suggesting that investors anticipate a significant move in Nordson shares, potentially due to an upcoming event that could trigger a rally or sell-off [2] Analyst Sentiment - Currently, Nordson holds a Zacks Rank 3 (Hold) in the Manufacturing - General Industrial industry, which is positioned in the bottom 38% of the Zacks Industry Rank. Over the past 60 days, no analysts have raised their earnings estimates for the current quarter, while two have lowered their estimates, resulting in a decrease of the Zacks Consensus Estimate from $2.41 to $2.36 per share [3] Trading Strategy Implications - The high implied volatility surrounding Nordson may indicate a developing trading opportunity. Options traders often seek to sell premium on options with high implied volatility, aiming to benefit from the decay of the option's value if the underlying stock does not move as much as anticipated [4]

Financial Data and Key Metrics Changes - Sales for Q1 2025 were $615 million, down 3% from $633 million in Q1 2024, primarily due to an 8% increase from the Atrion acquisition offset by a 9% organic sales decrease and a 2% unfavorable currency translation [15][16] - Adjusted earnings per share were $2.06, slightly above the midpoint of guidance but a 7% decrease from the prior year adjusted earnings per share of $2.21 [20] - Gross margin was 56%, operating profit margin was 26%, and EBITDA margin was 31%, with free cash flow conversion at nearly 150% of net income [12][13] Business Line Data and Key Metrics Changes - **Industrial Precision Solutions**: Sales decreased 11% to $300 million, with an 8% organic decline and a 3% unfavorable currency impact. EBITDA was $113 million, a 10% decrease from the prior year [21][22] - **Medical and Fluid Solutions**: Sales increased 21% to $194 million, driven by the Atrion acquisition, which contributed $53 million. EBITDA was $64 million, an 8% increase from the prior year [23][25] - **Advanced Technology Solutions**: Sales decreased 11% to $121 million, with a 10% organic decline. EBITDA was $23 million, flat year-over-year, but the segment saw improved order intake [27][29] Market Data and Key Metrics Changes - Order entry rates accelerated throughout the quarter, growing double digits compared to the prior year, with backlog increasing to approximately $670 million [11][42] - The electronics business showed improvement in order intake, indicating potential recovery despite a slow start to the year [28][46] Company Strategy and Development Direction - The company is focused on integrating the Atrion acquisition and leveraging the NBS Next growth framework to enhance operational efficiencies and profitability [35][40] - Continued commitment to product innovation is evident, with new products being launched across various segments, including medical fluid components and polymer processing [39][40] - The company aims to manage costs effectively while balancing investments to support increasing order entry trends [41][63] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a challenging demand environment but expressed confidence in the company's ability to deliver strong profitability [34][62] - The outlook for Q2 2025 anticipates sales in the range of $650 million to $690 million, with adjusted earnings per share expected between $2.30 and $2.50 [42] - Management remains cautious about geopolitical and macroeconomic factors impacting the business but sees positive signs in order entry and backlog growth [62][64] Other Important Information - The Measurement & Control Solutions division has been realigned to the Advanced Technology Solutions segment, with prior year financial information revised for comparability [6][7] - The company repurchased approximately $60 million in shares and paid $45 million in dividends during the quarter, while reducing net debt by $20 million [13][32] Q&A Session Summary Question: What played out in the electronics-related business in the quarter? - Management indicated that the miss in the ATS business was largely due to timing of orders, but order entry and backlog showed strong growth [46][47] Question: When do we start to see year-on-year growth in the interventional side of the medical-related business? - Management expects to see year-on-year growth starting in Q3 and heading into Q4 as destocking trends abate [49] Question: What would organic growth have been excluding the Measurement & Control Solutions move? - Management noted that the MCS business did not significantly impact overall growth, and its contribution was not material to the total segment [55][56] Question: What are the drivers offsetting weaker sales? - Management highlighted strong operational performance and cost management as key factors that would allow the company to meet earnings commitments despite lower sales [60][62] Question: How much of the margin dilution in the medical segment was due to Atrion? - The majority of the margin dilution was attributed to the lower EBITDA margins from Atrion, while the core medical business performed in line with expectations [81][84] Question: What is the outlook for the ARAG business? - Management indicated that the ARAG business is beginning to see modest sequential improvement in order entry and backlog, with expectations for growth in the upcoming quarters [122][156]

Financial Performance - Net sales for the three months ended January 31, 2025, were $615,420, a decrease of 2.8% compared to $633,193 for the same period in 2024[107] - Gross margin for the three months ended January 31, 2025, was $335,896, representing a gross margin percentage of 54.6%, down from 55.0% in the prior year[107] - Operating profit decreased by 11.6% to $140,947 for the three months ended January 31, 2025, compared to $159,435 in the same period of 2024[107] - Net income for the three months ended January 31, 2025, was $94,652, or $1.65 per diluted share, down 13.6% from $109,572, or $1.90 per diluted share, in the prior year[114] Segment Performance - The IPS segment experienced an organic sales decrease of 8.4%, primarily due to weaker demand in polymer processing and industrial coatings[108] - The MFS segment saw an organic sales decrease of 11.2%, attributed to lower demand in medical interventional solutions[108] - The ATS segment reported a 9.6% organic sales decrease, driven by lower systems deliveries in electronics processing[108] Cash and Financing - Cash and cash equivalents increased by $14,472 during the three months ended January 31, 2025, with 78% held at foreign subsidiaries[116] - The company has a $1,150,000 unsecured multi-currency credit facility, with $280,000 outstanding on the term loan and $220,000 on the revolving credit facility as of January 31, 2025[117] Tax and Economic Conditions - The effective tax rate for the three months ended January 31, 2025, was 19.0%, compared to 21.0% for the same period in 2024[113] - The company acknowledges risks related to U.S. and international economic and political conditions, which may impact future performance[119] Forward-Looking Statements - Forward-looking statements reflect management's current expectations but involve risks and uncertainties that could lead to significant variances from anticipated results[121] - The company has not materially changed its disclosures regarding financial instruments sensitive to interest rates and foreign currency exchange rates since the last report[123]

Core Viewpoint - Nordson Corporation's first-quarter fiscal 2025 results showed a decline in earnings and revenues, missing consensus estimates, indicating challenges in key segments and overall market conditions [1][2]. Financial Performance - Adjusted earnings per share for the first quarter were $2.06, missing the Zacks Consensus Estimate of $2.08, and decreased by 6.8% year over year [1]. - Revenues totaled $615.4 million, down 2.8% from the previous year, and also missed the consensus estimate of $636 million [2]. - Organic sales declined by 9.4% year over year, with a positive impact from acquisitions of 8.4% and a negative impact from foreign currency translation of 8.4% [3]. Segment Performance - Revenues from the Industrial Precision Solutions segment were $300 million, down 11% year over year, contributing 48.8% to total revenues [4]. - Medical and Fluid Solutions revenues increased by 21.4% to $193.6 million, contributing 31.5% to total revenues, despite an organic sales decrease of 11.2% [5]. - Advanced Technology Solutions sales were $121.4 million, up 4.7% year over year, representing 19.7% of total revenues, with organic sales down 9.6% [6]. Margin and Expenses - Cost of sales decreased by 1.8% to $279.5 million, with gross profit at $335.9 million, down 3.6%, leading to a gross margin decrease of 400 basis points to 54.6% [7]. - Selling and administrative expenses rose by 3.2% to $194.9 million, while adjusted EBITDA was $188.1 million, with a margin of 30.6% [8]. Balance Sheet and Cash Flow - Cash and cash equivalents at the end of the first quarter were $130.4 million, up from $116 million at the end of fiscal 2024, while long-term debt was $2.09 billion [9]. - Net cash generated from operating activities was $159.1 million, down 7.7% year over year, with capital expenditures of $21.4 million, up 184.2% [10]. Shareholder Returns - Dividends paid out in the first quarter totaled $44.6 million, a 14.8% increase from the previous year, and share buybacks amounted to $60.1 million, significantly up from $7.4 million [11]. Outlook - For the second quarter of fiscal 2025, Nordson projects sales between $650 million and $690 million, with adjusted earnings expected to be between $2.30 and $2.50 per share [12].

1Q Fiscal 2025 Webcast February 20, 2025 NBS NEXT OWNER MINDSET WINNING TEAMS Safe Harbor Statement Click to edit title Under the Private Securities Litigation Reform Act of 1995 Certain statements contained in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by terminology such as "may," "will," "should," "could," "expects," "anticipates," "believes," "projects," "forecasts," "outlook," "guid ...

For the quarter ended January 2025, Nordson (NDSN) reported revenue of $615.42 million, down 2.8% over the same period last year. EPS came in at $2.06, compared to $2.21 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $636.33 million, representing a surprise of -3.29%. The company delivered an EPS surprise of -0.96%, with the consensus EPS estimate being $2.08.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street ...