Nordson Corporation (NASDAQ: NDSN) has posted better than expected results in the fourth quarter of FY 17 due to the robust demand in electronics end markets within the Advanced Technology segment. NDSN has posted strong results in the fourth quarter against very challenging prior year comparisons where total company organic sales growth was 13 percent. The backlog has increased approximately $402 million compared to the same period a year ago. This is inclusive of 28 percent organic growth and 17 percent growth due to acquisitions. The company’s operating margin has expanded 4 percentage points, to 28%, above guidance for 21%. As a result, the stock enhanced over 10.3% in the pre-market session on December 14^th, 2017 (as of 7:16AM EST ; Source: Google finance). NDSN stock has risen 19% in a year (source: Google Finance).

Nordson Corporation  has reported the adjusted earnings per share of $1.38 in the fourth quarter of FY 17, beating the analysts’ estimates for the adjusted earnings per share of $1.32. The company had reported the adjusted revenue growth of 13 percent to $573.9 million in the third quarter of FY 17, beating the analysts’ estimates for revenue of $543 million. The sales grew due to the 2 percent rise in the organic volume, a 10 percent growth related to the first year effect of acquisitions, and a 1 percent increase related to the favorable effects of currency translation as compared to the prior year’s fourth quarter.

For the first quarter of FY18, NDSN expects the sales to increase 30 percent to 34 percent compared to the first quarter a year ago. This growth includes organic volume growth of 15 percent to 19 percent, 11 percent growth from the first year effect of acquisitions, and a positive currency effect of 4 percent based on the current exchange rate environment. Further, in the Q1 FY 18, the operating margin is expected to be approximately 22 percent and GAAP diluted earnings per share are expected to be in the range of $1.29 to $1.39, inclusive of $6 million or $0.07 per diluted share of intangible asset amortization expense related to FY17 acquisitions. EBITDA and EBITDA margin are expected to be $146 million and 27 percent at the midpoint of the guidance, respectively.

In addition, NDSN expects for the next quarter, the growth will be driven by the Advanced Technology segment as there is continued strength in the electronics and medical end markets. However, NDSN does not have a long-term visibility, it expects growth rates to moderate later in the year.