Why Is Nordson (NDSN) Up 1.6% Since Last Earnings Report?

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].