Nordson (NDSN) Earnings Expected to Grow: Should You Buy?

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].