Nordson Corporation (NDSN) Beats On Q2 Earnings, Revenues

Nordson Corporation (NASDAQ:NDSN) reported better-than-expected results for second-quarter fiscal 2018 (ended April 2018).

Earnings/Revenues

Adjusted earnings in the fiscal second quarter came in at $1.56, surpassing the Zacks Consensus Estimate of $1.42. The bottom line also exceeded the year-ago tally of $1.35 per share.

Net sales in the reported quarter came in at $553.7 million, outpacing the Zacks Consensus Estimate of $550 million. The top line also came in higher than the year-ago tally of $496.1 million. The uptick primarily stemmed from acquisition benefits and favorable foreign currency-translation impact.

Segmental Breakdown

Revenues of Adhesive dispensing systems came in at $69.5 million in the quarter, up 5.8% year over year.

Sales of Advanced technology systems were up 7.4% year over year to $58.3 million.

Industrial coating systems generated revenues worth $11.6 million in the reported quarter, up 12.9% year over year.

Costs/Margins

Cost of sales in the quarter was $246.9 million, up 11.9% year over year. Selling & administrative expenses came in at $180.1 million, up from $172 million recorded in the year-ago quarter.

Operating margin in the fiscal second quarter was 22.9%, up 200 basis points year over year.

Balance Sheet/Cash Flow

Exiting the fiscal second quarter, the company had cash and marketable securities worth $155.9 million, up from $90.4 million recorded at the end of fiscal 2017. Long-term debt was $1,312.5 million, up from $1,256.4 million reported as of Oct 31, 2017.

In the first half of fiscal 2018, this Zacks Rank #2 (Buy) company generated $212.3 million cash from operating activities, up 47.2% year over year. Capital expenditures in the first six months of the fiscal year reached $33 million, up from $27 million recorded in the year-ago period.

Outlook

For third-quarter fiscal 2018, Nordson anticipates its sales to lie in the range of up 1% to down 3%. Also, earnings per share in Q3 are projected at $1.47-$1.63 per share.

Other Stocks to Consider

Some other top-ranked stocks in the Zacks Industrial Products sector are listed below:

Axon Enterprise, Inc. (NASDAQ:AAXN) sports a Zacks Rank of #1 (Strong Buy). The company pulled off an outstanding average positive earnings surprise of 330%, over the last four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

Acco Brands Corp. (NYSE:ACCO) holds a Zacks Rank of #2. The company came up with an average positive earnings surprise of 11.06%, over the preceding four quarters.

Altra Industrial Motion Corp. (NASDAQ:AIMC) also carries a Zacks Rank #2. The company recorded an average positive earnings surprise of 5.06%, during the same time frame.

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Nordson Corporation (NDSN): Free Stock Analysis Report

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