Nordson Corporation Reported its Q2 Fiscal 2024 ResultsNordson Corporation ( NASDAQ:NDSN ) reported its second quarter fiscal 2024 results, with sales of $651 million and net income of $118 million. The company's adjusted earnings per diluted share were $2.05, while adjusted earnings per diluted share were $2.34. EBITDA was $203 million, or 31% of sales, compared to the prior year's EBITDA of $203 million, or 31% of sales.
The company's second-quarter sales included a favorable acquisition impact of 5%, partially offset by an organic sales decrease of 4%. The organic sales decrease was driven by ongoing pressure in electronics product lines, partially offset by growth in industrial coatings systems and fluid solutions product lines. Net income was $118 million, or $2.05 of earnings per diluted share, compared to the prior year's second quarter net income of $128 million, or $2.21 of earnings per diluted share. Adjusted net income was $135 million, a decrease from the prior year's adjusted net income of $141 million. Second quarter 2024 adjusted earnings per diluted share were $2.34, a 4% decrease from the prior year's adjusted earnings per diluted share of $2.45.
EBITDA in the second quarter was $203 million, or 31% of sales, compared to the prior year's EBITDA of $203 million, or 31% of sales. EBITDA was flat as improved gross margins were offset by higher selling and administrative expenses primarily related to the first-year effect of the ARAG acquisition.
Industrial Precision Solutions sales of $367 million increased 9% from the prior year, inclusive of an acquisition impact and an organic sales increase of 2%. Operating profit was $118 million, an increase of $6 million from the prior year. EBITDA in the quarter was $132 million, or 36% of sales, an 11% increase from the prior year second quarter EBITDA of $119 million, or 35% of sales. Medical and Fluid Solutions sales of $169 million increased 2% compared to the prior year second quarter, driven by growth in the fluid and interventional solutions product lines.
Nordson ( NASDAQ:NDSN ) is entering the third quarter of fiscal 2024 with approximately $700 million in backlog, which continues to normalize and remain concentrated in systems businesses. Based on current visibility and order entry trends, the company is updating its full-year revenue guidance range to flat to 2% growth over record fiscal 2023 and adjusted earnings per diluted share to the range of $9.35 to $9.75 per diluted share.
Technical Outlook
Nordson ( NASDAQ:NDSN ) is down 26.29% in Tuesday's Pre-Market trading. The Nordson share ( NASDAQ:NDSN ) has demonstrated a predominantly upward trajectory since breaking out from a multi-month trading range in mid-December of the previous year. However, the stock is currently positioned to retreat to the midsection of the range on Tuesday due to the company's conservative guidance.
Should selling pressure escalate in the upcoming trading sessions, it is advisable for investors to monitor the $230 level. This area represents a potential point of interest for buyers, as it aligns with a horizontal line connecting a series of price actions over the past 20 months. Furthermore, it is near a golden cross pattern formed in late last year.
NDSN trade ideas
$NDSN is coming up on the right side of its base!Notes:
* Strong up trend on the higher time frames
* Strong earnings track record
* Basing for the past ~15 months
* Increasing volume on the monthly and weekly charts
* Currently breaking out, with volume, of a long germ pivot of 242.64 on the weekly chart
* On the daily chart it broke out, and retested that pivot as support while also pulling back to its 20EMA
* Has been seeing more accumulation recently, indicating institutional demand
Technicals:
* Sector: Industrials - Specialty Industrial Machinery
* Relative Strength vs. Sector: 1.41
* Relative Strength vs. SP500: 1.09
* U/D Ratio: 1.24
* Base Depth: 37.2%
* Distance from breakout buy point: -7.93%
* Volume -60.53% below its 15 day avg.
Trade Idea:
* You can enter now as the price is bouncing off of it's long term pivot of $242.64 and also its 20EMA
* If you want you can place an order around the $242.64 area as well as it may retest it as support since the volume is low on the daily chart.
* Statistically, this stock may go 22.14% higher from here. Of course that won't be immediately but, looking at its history it could push higher using it's 20EMA as a dynamic level of support and get there.
NORDSON CORP Opportunity DailyHello traders, NORDSON CORP is in a fake bearish configuration with a fake return of sell volume executed. Looking at the TIMEFRAME M1 we notice a dash with a low volume of purchase made, she came to test the VWAP to return. Based on the bollinger and access the top of the balance area to chick it again. It is very plausible to breakout the price with the return of momentum at the same time the zone to interfere in another and put on the high which comes.
With an attempt to close the bearish breakout gap before further breaking out an equilibrium zone (See TIMEFRAME H1).
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$NDSN with a neutral outlook following earning releaseThe PEAD projected a neutral outlook for $NDSN after a negative under reaction following its earning release placing the stock in Drift D
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$NDSN Possible long on Breakout Nagarajan said, "Though our performance through the first half of the year has been solid considering the impact of COVID-19 on the global end markets we serve, and we have a strong backlog heading into the second half of the year, we have seen a softening in order trends over the last six weeks. This is a dynamic environment, making it difficult to accurately forecast the impact this pandemic will have on our business for the remainder of the fiscal year. We have a solid foundation, fortified by the diversity of our business and our strong balance sheet. We will stay focused on the health and safety of our employees and the success of our customers, and we will continue to progress our long-term strategic priorities of accelerating organic growth, diversifying through acquisition, leveraging the Nordson Business System and focusing on talent development."
Sales were $529 million
Operating profit was $125 million, or 24 percent of sales
EBITDA was $152 million, or 29 percent of sales
GAAP diluted EPS was $1.58
Adjusted diluted EPS was $1.58 compared to $1.54 in the prior year’s second quarter
$NDSN:NASDAQ - NORDSON CORP- Nice run after breakout.NORDSON is continuing its nice run post its earlier breakout through that traditional resistance area. Trade / manufacturing fears lessening has been in its favour. Might be worth a look.
Nordson Corporation engineers, manufactures and markets differentiated products and systems used to dispense, apply and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids, to test and inspect for quality, and to treat and cure surfaces. The Company's segments include Adhesive Dispensing Systems, Advanced Technology Systems and Industrial Coating Systems. The Adhesive Dispensing Systems segment delivers its precision dispensing and processing technology to various markets. The Advanced Technology Systems segment integrates its product technologies found in progressive stages of a customer's production process, such as surface treatment, precisely controlled automated, and post-dispense bond testing, optical inspection and X-ray inspection. The Industrial Coating Systems segment provides equipment used primarily for applying coatings, paint, finishes, sealants and other materials, and for curing and drying of dispensed material.
$NDSN Nordson Corp Breaking out. Strong breakout on high volume but advisable not to chase the rally, technically a retest is very possible which will present a better opportunity.
Indicators reaching overbought levels.
P/E ratio 27 high.
Company profile
Nordson Corp. engages in the engineering, manufacture and market of products and systems used for adhesives, coatings, sealants, biomaterials and other materials. It operates through three segments: Adhesive Dispensing, Advanced Technology, and Industrial Coating Systems. The Adhesive Dispensing Systems segment delivers its dispensing and processing technology to diverse markets for applications. This segment provides packaging, polymer processing and product assembly services. The Advanced Technology Systems segment offers electronic systems, fluid management, test and inspection services. The Industrial Coating Systems segment provides standard and highly-customized equipment used primarily for applying coatings, paint, finishes, sealants and other material. This segment provides cold materials, container coating, liquid finishing, powder coating, curing and drying systems. The company was founded by Eric T. Nord, Evan W. Nord and Walter G. Nord in 1954 and is headquartered in Westlake, OH.
Nordson staged reversal post earnings =====Entry level $139-Target price $149=====.
COMPANY PROFILE
Nordson Corp. engages in the engineering, manufacture and market of products and systems used for adhesives, coatings, sealants, biomaterials and other materials. It operates through three segments: Adhesive Dispensing, Advanced Technology, and Industrial Coating Systems. The Adhesive Dispensing Systems segment delivers its dispensing and processing technology to diverse markets for applications. This segment provides packaging, polymer processing and product assembly services. The Advanced Technology Systems segment offers electronic systems, fluid management, test and inspection services. The Industrial Coating Systems segment provides standard and highly-customized equipment used primarily for applying coatings, paint, finishes, sealants and other material. This segment provides cold materials, container coating, liquid finishing, powder coating, curing and drying systems. The company was founded by Eric T. Nord, Evan W. Nord and Walter G. Nord in 1954 and is headquartered in Westlake, OH.
$NDSN Don't hold much optimism in Nordson on Global WorriesIn the past few weeks, the rose tinted glasses have come off investors and selling has intensified, in particular companies with exposure worldwide and in China have been hardest hit. In NDS NASDAQ:NDSN last earnings report it missed on the top and bottom line. We do not see much reason to expect anything different this time round, the company has increased the dividend but that has not abated the selling which is clearly evident in the OBV indicator which has very BEARISH divergences. We will not be entering the name but may go short if the channel breaks down.
Analysts average rating Hold
Analysts average price target $146
Company Description
Nordson Corp. engages in the engineering, manufacture and market of products and systems used for adhesives, coatings, sealants, biomaterials and other materials. It operates through three segments: Adhesive Dispensing, Advanced Technology, and Industrial Coating Systems. The Adhesive Dispensing Systems segment delivers its dispensing and processing technology to diverse markets for applications. This segment provides packaging, polymer processing and product assembly services. The Advanced Technology Systems segment offers electronic systems, fluid management, test and inspection services. The Industrial Coating Systems segment provides standard and highly-customized equipment used primarily for applying coatings, paint, finishes, sealants and other material. This segment provides cold materials, container coating, liquid finishing, powder coating, curing and drying systems