Nordson's Q1 Earnings & Revenues Miss Estimates, Decrease Y/Y

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].