Photographer: Alex Kent/Bloomberg © 2024 Bloomberg Finance LP The coming week is post-OPEX (options expiration week) in May. This has been one of the stronger such weeks among the 12 months of any year since 1985. A rally into the end of the month is expected. Palo Alto reports after the bell on Monday. The stock is highly-ranked for relative strength and seasonality. The period from May through August has been a bullish stretch for this stock. Short-term cycles imply a positive reaction to the earnings ann ...

Nordson Corporation (NDSN) is scheduled to release second-quarter fiscal 2024 (ended Apr 30) results on May 20, after market close. The company has an impressive earnings surprise history, with the average beat being 5.2%. In the last reported quarter, its earnings of $2.21 per share surpassed the Zacks Consensus Estimate of $2.03 by 8.9%. Let's see how things have shaped up for Nordson this earnings season. Factors to Note The Industrial Precision Solutions segment's results are likely to benefit from stro ...

Core Insights - Analysts project Nordson (NDSN) will report quarterly earnings of $2.30 per share, reflecting a 1.8% year-over-year increase, with revenues expected to reach $658.35 million, up 1.3% from the same quarter last year [1] - The consensus EPS estimate has remained unchanged over the last 30 days, indicating stability in analysts' assessments [1][2] Revenue Estimates - 'Net sales- Industrial Precision Solutions' are estimated to reach $360.16 million, showing a year-over-year increase of 7.3% [4] - 'Net sales- Advanced Technology Solutions' is projected at $124.09 million, indicating a decline of 16.1% from the prior-year quarter [4] - 'Net sales- Medical and Fluid Solutions' is expected to be $171.24 million, reflecting a year-over-year increase of 2.8% [4] Operating Profit Estimates - The consensus estimate for 'Operating profit (loss)- Advanced Technology Solutions' is $20.49 million, down from $26.09 million a year ago [5] - 'Operating profit (loss)- Medical and Fluid Solutions' is expected to reach $50.73 million, compared to $47.92 million reported in the same quarter last year [5] - 'Operating profit (loss)- Industrial Precision Solutions' is projected at $113.68 million, slightly up from $111.77 million reported in the same quarter last year [6] Stock Performance - Nordson shares have increased by 3.6% over the past month, outperforming the Zacks S&P 500 composite, which moved up by 2.5% [6] - With a Zacks Rank 4 (Sell), Nordson is expected to underperform the overall market in the near future [6]

Core Viewpoint - Nordson Corporation (NDSN) is facing challenges due to weak performance in the Advanced Technology Solutions segment and rising operating costs, which are expected to negatively impact earnings in the upcoming quarters [1]. Business Weakness - The Advanced Technology Solutions segment is experiencing decreased demand for electronics dispensing products, particularly in the cyclical semiconductor market, leading to a revenue decline of 17.6% in the fiscal first quarter ending January 2024 [2]. Steep Costs - The company is grappling with high sales costs, with the cost of sales increasing by 1.1% year over year in the first quarter due to rising input costs. Additionally, selling and administrative expenses rose by 2.4% year over year, driven by increasing acquisition costs, which threaten Nordson's profitability [3]. Forex Woes - Nordson's international operations expose it to risks from adverse currency fluctuations, particularly with a strengthening U.S. dollar, which may necessitate price increases or reduce profit margins in foreign markets. The Industrial Precision solution segment is notably vulnerable to these foreign currency headwinds [4]. Southbound Estimate Revisions - Over the past 60 days, the Zacks Consensus Estimate for NDSN's fiscal 2024 earnings has been revised downward by 0.2% [5]. Price Performance - Nordson's shares have increased by 28.7% over the past year, which is below the industry's growth of 32.9% during the same period [5].

Core Viewpoint - Nordson (NDSN) is anticipated to report a year-over-year increase in earnings driven by higher revenues for the quarter ended April 2024, with the actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for Nordson's quarterly earnings is $2.30 per share, reflecting a year-over-year increase of 1.8%, while revenues are projected to be $658.35 million, up 1.3% from the previous year [3]. - The earnings report is scheduled for release on May 20, and stock movement may occur based on whether the reported figures exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their initial projections during this period [4]. - A negative Earnings ESP of -1.22% suggests that analysts have recently become more pessimistic about Nordson's earnings prospects, with the Most Accurate Estimate being lower than the Zacks Consensus Estimate [10]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict the likelihood of actual earnings deviating from consensus estimates, with positive readings being more reliable [6][7]. - Stocks with a positive Earnings ESP and a Zacks Rank of 1, 2, or 3 have historically shown a nearly 70% chance of delivering a positive surprise [8]. Historical Performance - In the last reported quarter, Nordson exceeded the expected earnings of $2.03 per share by delivering $2.21, resulting in a surprise of +8.87% [12]. - Over the past four quarters, Nordson has consistently beaten consensus EPS estimates [13]. Conclusion - Despite the historical performance of beating estimates, the current combination of a negative Earnings ESP and a Zacks Rank of 4 suggests that Nordson may not be a strong candidate for an earnings beat in the upcoming report [10][11][16].

Financial Data and Key Metrics Changes - Sales for Q1 2024 were $633 million, a 4% increase from $610 million in Q1 2023, driven by a 5% contribution from the ARAG acquisition, partially offset by a 2% organic sales decrease [9][37] - Adjusted earnings per share (EPS) for the quarter were $2.21, a 3% increase from $2.14 in the prior year [16] - Free cash flow reached a record $165 million, representing 150% of net income, and an improvement of $51 million from the previous year [10][21] - EBITDA, excluding ARAG acquisition-related costs, was $126 million, or 36% of sales, a 16% increase compared to $109 million in the prior year [17] Business Line Data and Key Metrics Changes - Medical and Fluid Solutions sales were $160 million, a 3% increase year-over-year, driven by double-digit growth in medical interventional solutions [18] - Industrial Precision Solutions sales increased 14% to $355 million, with organic sales up 2% [41] - Advanced Technology Solutions sales decreased 18% to $119 million, primarily due to weakness in electronics dispense products serving semiconductor markets [44] Market Data and Key Metrics Changes - The company noted ongoing weakness in the electronics product lines, particularly in the semiconductor sector, which is expected to recover in the fourth quarter of fiscal 2024 [28][34] - The backlog at the end of Q1 was approximately $750 million, higher than the historical norm of $600 million to $650 million [30][87] Company Strategy and Development Direction - The company is focused on the NBS Next growth framework, which emphasizes prioritizing top products and simplifying operations to enhance profitability [24][48] - The integration of ARAG is progressing well and is expected to contribute positively to sales and EBITDA margins [12][93] - The company anticipates growth opportunities in AI, automotive electronics, and the CHIPS Act, although benefits may materialize closer to the end of the year [53][100] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate current market challenges, citing a robust opportunity pipeline and steady order entry patterns [60][85] - The company expects full-year revenue growth to be in the range of 4% to 7%, with earnings per share growth forecasted at 2% to 7% [55][56] - Management acknowledged the impact of the Chinese New Year on Q2 results, estimating a $10 million to $15 million effect [90] Other Important Information - The company appointed two new board members, Chris Mapes and Annette Clayton, who bring extensive operational and industry experience [32][77] - The effective tax rate for the quarter was 21%, consistent with prior year rates [40] Q&A Session Summary Question: What prompted the delay in the expected recovery in the electronics and semiconductor markets? - Management indicated that order entry has not yet picked up as anticipated, but they remain confident about the second half of the year based on existing backlog and early indicators from niche businesses [34][35] Question: Are there any structural challenges in the ATS segment? - Management clarified that while there is cyclicality in the test and inspection business, they do not see any structural changes that would limit growth [62] Question: How is the backlog expected to impact future performance? - The backlog of $750 million is higher than normal, and management expects it to support revenue in the upcoming quarters [87] Question: What is the expected impact of the Chinese New Year on Q2 results? - The anticipated impact is estimated to be around $10 million to $15 million, primarily affecting the IPS segment [90][116] Question: How is the integration of ARAG progressing? - The integration is going well, with positive contributions to sales and EBITDA margins expected [93]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended January 31, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-7977 NORDSON CORPORATION (Exact name of registrant as specified in its charter) ________________________________________________ ...

Nordson Corporation Reports First Quarter Fiscal 2024 Results and Narrows Annual Guidance Guidance: • Narrowing previously issued full-year fiscal 2024 revenue guidance to 4% to 7% growth over record fiscal 2023 and adjusted earnings per diluted share to the range of $10.00 to $10.50 per share WESTLAKE, Ohio--(BUSINESS WIRE)--February 21, 2024--Nordson Corporation (Nasdaq: NDSN) today reported results for the fiscal first quarter ended January 31, 2024. Sales were $633 million, a 4% increase compared to the ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended October 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-7977 NORDSON CORPORATION (Exact name of Registrant as specified in its charter) Ohio (State of incorporation) 28601 Clemens Road Westlak ...

Financial Data and Key Metrics Changes - Fourth quarter 2023 sales were $719 million, a 5% increase from $684 million in the prior year [8] - EBITDA for the fourth quarter increased 12% to a record $227 million, or 32% of sales, compared to $202 million or 30% of sales in the prior year [21] - Net income totaled $128 million or $2.22 per share, with adjusted earnings per share of $2.46, a 1% increase over the prior year [23] - Full year EBITDA increased 1% to a record $819 million, or 31% of sales, marking the third consecutive year of EBITDA growth [24] Business Line Data and Key Metrics Changes - Industrial Precision Solutions sales increased 14% to $405 million, with organic growth of 4% and ARAG acquisition contributing 7% [36] - Advanced Technology Solutions sales decreased 1% to $145 million, with a 16% organic sales volume decline offset by a 15% contribution from CyberOptics [37] - Medical and Fluid Solutions sales decreased 7% to $169 million, primarily due to an 8% organic sales volume decline [59] Market Data and Key Metrics Changes - Strong growth was noted in the Americas and Asia Pacific regions, with EBITDA for the quarter at $148 million, or 37% of sales, a 26% increase from the prior year [25] - The electronics division is positioned for incremental earnings growth as the semiconductor market is expected to recover in the second half of calendar 2024 [28] Company Strategy and Development Direction - The company aims to achieve $3 billion in sales and greater than 30% EBITDA margins by 2025 as part of its Ascend strategy [6] - The Ascend strategy has led to solid financial performance, with record sales and cash flow in fiscal 2023 [7] - The company is focused on acquiring differentiated precision technologies to enhance its portfolio and meet strategic and financial criteria [62] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic uncertainties, citing a strong focus on customers and innovation [61] - The biopharma market is expected to recover to high single-digit growth rates, with no structural impediments identified [44] - For fiscal 2024, sales are forecasted to grow between 4% to 9% above fiscal 2023 sales, with adjusted earnings growth of 1% to 8% per diluted share [63] Other Important Information - The company generated a record free cash flow of $607 million for the full year 2023, allowing for debt repayment and shareholder returns [26] - The integration of the ARAG acquisition is progressing well, with expectations for continued growth in the European and South American markets [118] Q&A Session Summary Question: How does the EBITDA margin evolve over the next two to three years? - Management believes the current EBITDA margin of 31% is sustainable, depending on the mix of organic and acquisition growth [42] Question: What is the expected cadence of recovery in the biopharma market? - Recovery is anticipated to be slower, with a return to high single-digit growth expected in the long term [43][44] Question: What is the organic growth assumption embedded in the guidance? - The full year guidance implies organic growth of about 1%, with a total growth forecast of 6% [52] Question: How is the electronics segment expected to recover? - Recovery is expected based on historical trends and customer conversations, with a good pipeline of opportunities [53] Question: What are the expectations for the ARAG business in 2024? - ARAG is expected to grow in 2024, despite some market pressures, due to its recurring revenue model [76]