Group 1: Company Performance and Growth - Nordson Corporation (NDSN) is experiencing solid momentum in the Industrial Precision Solutions segment, driven by the popularity of its packaging and nonwoven product lines [1] - The company expects sales for fiscal 2024 to be in the range of $2.665-$2.705 billion, indicating a year-over-year growth of 2.1% at the midpoint [1] - The acquisition of Atrion Corporation in August 2024 will enhance NDSN's medical offerings in infusion and cardiovascular therapies [2] - The ARAG Group acquisition in August 2023 has expanded NDSN's capabilities in precision dispensing technology, contributing to a 4% revenue boost in the third quarter of fiscal 2024 [3] Group 2: Shareholder Returns - NDSN is committed to rewarding shareholders, having paid out dividends of $116.8 million in the first nine months of fiscal 2024, a 4.8% increase year over year [4] - The company repurchased shares worth $34.1 million during the same period and increased its dividend by 15% to 78 cents per share in August 2024, marking the 61st consecutive year of dividend increases [4] Group 3: Market Challenges - The Advanced Technology Solutions segment is facing challenges due to lower demand for electronics processing and x-ray and test product lines [6] - The Medical and Fluid Solutions segment is also experiencing soft demand for interventional solutions and fluid components [6] - Rising costs and expenses are a concern, with cost of sales increasing by 1.5% year over year and selling and administrative expenses rising by 2.4% in the fiscal third quarter [7]

Core Viewpoint - Nordson reported a mixed performance in its third-quarter fiscal 2024 earnings, with adjusted earnings per share surpassing estimates but a year-over-year decline in net income and organic sales [2][3][12]. Financial Performance - Adjusted earnings for Q3 fiscal 2024 were $2.41 per share, exceeding the Zacks Consensus Estimate of $2.33, but down 6% year-over-year [2]. - Revenues reached $661.6 million, a 2% increase from the previous year, driven by the Industrial Precision Solutions segment, and surpassed the Zacks Consensus Estimate of $655 million [3]. - Organic sales declined by 1% year-over-year, attributed to softness in electronics and medical product lines, while acquisitions contributed positively by 4% and foreign currency translation negatively impacted by 1% [3]. Segment Performance - Revenues from the Industrial Precision Solutions segment were $370.6 million, up 9.6% year-over-year, contributing 56% to total revenues [4]. - Medical and Fluid Solutions revenues were $166.7 million, down 2.4% year-over-year, contributing 25.2% to total revenues [5]. - Advanced Technology Solutions sales were $124.3 million, down 10.9% year-over-year, representing 18.8% of total revenues [6]. Margin and Expenses - Cost of sales increased by 1.5% to $292.6 million, with gross profit rising 2.4% to $369 million, resulting in a gross margin of 55.8%, an increase of 30 basis points [7]. - Selling and administrative expenses rose 6.7% to $201.9 million, while operating income decreased by 2.3% to $167.1 million, leading to an operating margin of 25.3%, down 110 basis points [8]. Balance Sheet and Cash Flow - Cash and cash equivalents at the end of Q3 were $165.3 million, up from $115.7 million at the end of Q4 fiscal 2023, while long-term debt decreased to $1.4 billion from $1.6 billion [9]. - Net cash generated from operating activities in the first nine months of fiscal 2024 was $459.8 million, down 3.8% year-over-year, with capital expenditures increasing by 81% to $43.8 million [10]. Dividends and Share Buyback - Dividends paid in the first nine months of fiscal 2024 totaled $116.8 million, a 4.8% increase from the previous year, while treasury share purchases amounted to $34.1 million, down from $78.2 million [11]. Outlook - For fiscal 2024, Nordson anticipates adjusted earnings in the range of $9.45-$9.65 per share and sales between $2.665-$2.705 billion, both revised upward from previous estimates [12].

Core Viewpoint - Nordson Corporation (NDSN) is positioned for growth due to strong performance across its business segments and strategic acquisitions, making it an attractive investment option for shareholders [1]. Business Strength - The Industrial Precision Solutions segment is experiencing strong momentum, driven by increasing demand for nonwoven products in industrial and consumer non-durable markets, as well as a growing need for packaged goods in food, beverage, personal care, and cosmetics sectors [4]. Expansion Efforts - Nordson's acquisition strategy is enhancing its capabilities, with recent acquisitions contributing to revenue growth. In Q3 of fiscal 2024, acquired assets increased total revenues by 4%. The acquisition of Atrion Corporation in August 2024 will expand Nordson's medical offerings in infusion and cardiovascular therapies, expected to yield significant operational synergies [5][6]. - The acquisition of ARAG Group in August 2023 enhanced Nordson's precision dispensing technology, allowing entry into the precision agriculture market. Additionally, the acquisition of CyberOptics Corporation in November 2022 expanded its semiconductor test and inspection capabilities [6]. Shareholder Rewards - Nordson is committed to increasing shareholder value through dividends and share repurchases. In the first nine months of fiscal 2024, the company paid out $116.8 million in dividends, a 4.8% increase year-over-year, and repurchased shares worth $34.1 million. In August 2024, the dividend was raised by 15% to 78 cents per share, marking the 61st consecutive year of dividend increases [7]. - The board authorized an additional $500 million for share repurchases in September 2022, with approximately $0.52 million remaining from the total $1.5 million authorized as of the end of the fiscal third quarter [8].

Financial Data and Key Metrics - Q3 2024 sales were $662 million, up 2% YoY, driven by a 4% increase from the ARAG acquisition, partially offset by a 1% organic sales decrease and unfavorable currency translation [7] - Adjusted EPS for the quarter was $2.41, $0.08 above the midpoint of guidance but a 6% decrease YoY [9] - Free cash flow was $143 million, representing a 122% conversion rate on net income [6] - EBITDA margin was 31.5%, slightly below the prior year by 50 basis points due to higher selling and administrative costs [8] Business Segment Performance Industrial Precision Solutions (IPS) - Sales increased 10% YoY to $371 million, driven by a 7% contribution from the ARAG acquisition and 4% organic growth [10] - EBITDA for the segment was $135 million, or 36% of sales, up 10% YoY [10] Medical and Fluid Solutions (MFS) - Sales decreased 2% YoY to $167 million due to lower demand in medical interventional solutions and fluid components [11] - EBITDA was $62 million, or 37% of sales, a 9% reduction YoY [11] Advanced Technology Solutions (ATS) - Sales decreased 11% YoY to $124 million, driven by a 10% organic volume decline and unfavorable currency translation [12] - EBITDA was $26 million, or 21% of sales, below the prior year [12] Market Data and Key Metrics - The IPS segment saw steady growth in industrial and consumer non-durable end markets, with nonwovens picking up in Q3 [15] - The ATS segment is expected to benefit from increasing demand for advanced chips, automotive electronics, and the CHIPS Act [17] - Medical device customers are being more cautious with inventory purchases, leading to lower demand in certain product lines [16] Company Strategy and Industry Competition - The company continues to focus on top customers and differentiated products, improving product mix and managing costs [6] - The acquisition of Atrion Medical expands the company's addressable market in medical fluid components by more than 50% [5] - The company is leveraging the NBS Next growth framework to drive operational efficiency and growth [5] Management Commentary on Operating Environment and Future Outlook - Management expects the ATS segment to return to growth in 2025, driven by sequential and YoY increases in order entry [17] - Full-year fiscal 2024 adjusted EPS is expected to be in the range of $9.45 to $9.65, unchanged at the midpoint despite the inclusion of Atrion [19] - The company remains confident in the long-term growth drivers of the medical and fluid solutions segment, including aging populations and increased healthcare spending [16] Other Important Information - The company announced its 61st year of increasing its annual dividend, reflecting a commitment to growing capital returns [14] - The Atrion acquisition was funded with a $500 million term loan, cash on hand, and borrowings on the revolver, increasing net debt to $2.2 billion and leverage ratio to 2.5x [13] Q&A Session Summary Question: Atrion's Margin Profile and Steps to Improve - Management believes Atrion's EBITDA margins can return to Nordson-like levels over time, addressing supply chain and operational issues [21] Question: Growth in Test and Inspection Products - Strong momentum in optical and acoustic product lines, driven by new products and the semiconductor manufacturing cycle [23] Question: Implied Guidance for Q4 and Organic Growth - The company expects steady performance in IPS, with modest order entry pickup in ATS and cautious inventory management in MFS [26] Question: Medical Interventional Solutions Normalization - Management sees conservative order patterns from medical device customers, with long-term growth drivers intact but near-term softness [31] Question: Atrion's Revenue and Margin Expectations - Atrion is expected to achieve mid-single-digit growth, with EBITDA margins returning to historical levels by 2026 [29] Question: M&A Strategy and Pipeline - The company remains committed to a balanced acquisition-led growth strategy, with a healthy pipeline and disciplined financial criteria [36] Question: Geographic Performance and Market Shifts - The US market remains strong, with Asia-Pacific recovering and Europe showing weaker organic growth [43] Question: Backlog and Systems Normalization - Backlog remains weighted to system businesses, with book-and-ship businesses returning to normal order entry patterns [45] Question: ARAG Margin Performance - ARAG is performing at Nordson-like EBITDA margins, with integration progressing well despite market weakness [47]

Nordson Corporation's (NDSN) third-quarter fiscal 2024 (ended Jul 31, 2024) adjusted earnings of $2.41 per share surpassed the Zacks Consensus Estimate of $2.33. The bottom line decreased 6% year over year. The company has also completed its previously announced acquisition of Atrion Corporation (ATRI) . Quarterly Results of NDSN Nordson's revenues were $661.6 million, up 2% from the year-ago fiscal quarter's number driven by solid momentum in the Industrial Precision Solutions segment. Revenues beat the Za ...

Core Insights - Nordson reported revenue of $661.6 million for the quarter ended July 2024, reflecting a 2% increase year-over-year and surpassing the Zacks Consensus Estimate of $655.23 million by 0.97% [1] - The company's EPS for the quarter was $2.41, up from $2.35 in the same quarter last year, exceeding the consensus EPS estimate of $2.33 by 3.43% [1] Revenue Performance - Net Sales for Industrial Precision Solutions reached $370.56 million, exceeding the average estimate of $366.66 million by analysts, marking a year-over-year increase of 9.6% [3] - Net Sales for Advanced Technology Solutions were reported at $124.31 million, surpassing the average estimate of $117.31 million, but showing a decline of 10.9% compared to the previous year [4] - Net Sales for Medical and Fluid Solutions amounted to $166.74 million, below the average estimate of $172.65 million, representing a year-over-year decrease of 2.4% [5] Operating Profit Analysis - Operating profit for Advanced Technology Solutions was $22.95 million, exceeding the average estimate of $19.99 million [6] - Operating profit for Medical and Fluid Solutions was $48.37 million, falling short of the average estimate of $50.71 million [6] - Operating profit for Industrial Precision Solutions was $118.11 million, slightly below the average estimate of $118.95 million [7] - Corporate operating loss was reported at -$22.37 million, worse than the average estimate of -$18.50 million [8] Stock Performance - Over the past month, Nordson's shares have returned -0.2%, in contrast to the Zacks S&P 500 composite's increase of 1.8% [8] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [8]

Core Viewpoint - Nordson (NDSN) reported quarterly earnings of $2.41 per share, exceeding the Zacks Consensus Estimate of $2.33 per share, and showing an increase from $2.35 per share a year ago, indicating a 3.43% earnings surprise [1] Financial Performance - The company achieved revenues of $661.6 million for the quarter ended July 2024, surpassing the Zacks Consensus Estimate by 0.97% and up from $648.68 million year-over-year [2] - Over the last four quarters, Nordson has exceeded consensus EPS estimates four times and topped consensus revenue estimates three times [2] Stock Performance and Outlook - Nordson shares have declined approximately 9.4% since the beginning of the year, contrasting with the S&P 500's gain of 17.3% [3] - The company's earnings outlook is mixed, with a current Zacks Rank of 3 (Hold), suggesting expected performance in line with the market in the near future [6] Future Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $2.63 on revenues of $712.27 million, and for the current fiscal year, it is $9.52 on revenues of $2.65 billion [7] Industry Context - The Manufacturing - General Industrial industry, to which Nordson belongs, is currently ranked in the bottom 23% of over 250 Zacks industries, indicating potential challenges ahead [8]

Financial Performance - Sales for the third quarter of fiscal 2024 were $662 million, a 2% increase year-over-year, aligning with the mid-point of guidance[1] - Adjusted earnings per diluted share for the third quarter were $2.41, which is $0.08 above the mid-point of guidance, but a 6% decrease from the prior year[2] - The company reported a net income of $117 million for the third quarter, down from $128 million in the prior year[2] - EBITDA for the third quarter was $208 million, representing 31% of sales, consistent with the prior year[2] - Net income for the nine months ended July 31, 2024, was $345,116, a decrease of 4.0% from $359,715 for the same period in 2023[15] - Total sales for the nine months ended July 31, 2024, were $1,945,439, representing a 1.9% increase from $1,909,319 in the prior year[20] - Total sales for the three months ended July 31, 2024, were $661,604,000, a 2% increase from $648,677,000 in the same period of 2023[25] - Operating profit for the three months ended July 31, 2024, was $167,058,000, a decrease of 2% compared to $170,996,000 in the same period of 2023[25] - Adjusted net income for the three months ended July 31, 2024, was $138,461,000, compared to $146,597,000 in the same period of 2023[28] - Diluted earnings per share for the three months ended July 31, 2024, were $2.04, down from $2.22 in the same period of 2023[28] Segment Performance - The Industrial Precision Solutions segment reported sales of $371 million, a 10% increase from the prior year, driven by a 4% organic sales increase[3] - Medical and Fluid Solutions sales decreased by 2% to $167 million, primarily due to lower demand in interventional solutions[4] - Advanced Technology Solutions sales decreased by 11% to $124 million, impacted by lower organic sales and unfavorable currency translation[4] - The Industrial Precision Solutions segment saw a 10.8% increase in sales for the nine months, totaling $1,092,099 compared to $985,610 in the previous year[20] - Medical and Fluid Solutions segment sales increased by 0.7% to $495,229 from $491,683 year-over-year[20] - Advanced Technology Solutions segment experienced a decline of 17.1% in sales, down to $358,111 from $432,026[20] - Industrial Precision Solutions segment sales increased to $370,561,000 for the three months ended July 31, 2024, from $338,257,000 in the same period of 2023[25] - Medical and Fluid Solutions segment sales decreased slightly to $166,737,000 for the three months ended July 31, 2024, from $170,871,000 in the same period of 2023[25] - Advanced Technology Solutions segment sales decreased to $124,306,000 for the three months ended July 31, 2024, from $139,549,000 in the same period of 2023[25] Guidance and Backlog - The company is increasing its full-year revenue guidance to a range of $2,665 million to $2,705 million, reflecting the addition of the Atrion acquisition[5] - The company has a backlog of approximately $650 million entering the fourth quarter, indicating a normalization trend[5] Cash Flow and Equity - Cash provided by operating activities for the nine months was $459,812, slightly down from $478,072 in the previous year[15] - Cash used in investing activities was $34,890, significantly lower than $401,996 in the prior year, indicating reduced acquisition activity[15] - The company paid dividends totaling $116,789, an increase from $111,547 in the previous year[15] - Nordson's total shareholders' equity increased to $2,853.8 million as of July 31, 2024, compared to $2,598.1 million at the end of the previous fiscal year[13] Currency Impact - The effect of exchange rate changes on cash was a negative $4,665, compared to a positive $5,679 in the previous year[15] Depreciation and Adjustments - Total adjustments for operating profit were $26,898,000 for the three months ended July 31, 2024, compared to $23,703,000 in the same period of 2023[28] - The company reported a total depreciation and amortization of $33,382,000 for the three months ended July 31, 2024, compared to $27,102,000 in the same period of 2023[25]

Group 1 - Nordson Corporation is set to release its third-quarter earnings results on August 21, with analysts expecting earnings of $2.33 per share, a slight decrease from $2.35 per share in the same period last year [1] - The company projects quarterly revenue of $656.23 million for the upcoming quarter [1] - On August 14, Nordson's board increased its dividend from 68 cents to 78 cents per share, resulting in an annual dividend yield of 1.30% [2][5] Group 2 - To achieve a monthly income of $500 from dividends, an investment of approximately $460,501 or around 1,923 shares is required, while a more modest goal of $100 per month would need about $92,196 or 385 shares [2][3] - The dividend yield is calculated by dividing the annual dividend payment by the stock's current price, which can fluctuate based on changes in stock price and dividend payments [3][4] - As of the latest trading session, Nordson's shares fell by 0.1% to close at $239.47 [5]

Core Viewpoint - Nordson Corporation is set to release its third-quarter fiscal 2024 results, with expectations of a modest revenue increase but potential challenges in certain segments [1][7]. Group 1: Segment Performance - The Industrial Precision Solutions segment is projected to see revenues of $366.7 million, reflecting an 8.5% increase year-over-year due to strong customer demand in industrial coatings, polymer processing, and packaging [2]. - The Medical and Fluid Solutions segment is expected to achieve revenues of $172.6 million, indicating a 1% increase from the previous year, driven by demand for minimally invasive surgeries and advancements in fluid management technology [3]. - The Advanced Technology Solutions segment is anticipated to face challenges, with revenues estimated at $117.3 million, representing a decline of 15.9% year-over-year due to decreased demand in the semiconductor market [5]. Group 2: Financial Outlook - The overall revenue estimate for Nordson in the third quarter is $655.2 million, which marks a 1% increase compared to the same quarter last year [7]. - The consensus estimate for adjusted earnings per share is $2.33, reflecting a slight decrease of 0.9% from the prior year [7]. Group 3: Strategic Developments - The acquisition of ARAG Group is expected to enhance Nordson's capabilities in precision dispensing technology and expand its presence in the precision agriculture market [4]. - Rising costs related to sales and acquisitions are anticipated to impact operating expenses and margins negatively [6]. Group 4: Earnings Prediction - The current model does not predict a definitive earnings beat for Nordson, as the Earnings ESP stands at 0.00% with both the Most Accurate Estimate and the Zacks Consensus Estimate at $2.33 [8][9].