Nordson Corp (NASDAQ:NDSN) stock rose 1.74% (As on August 22, 11:33:49 AM UTC-4, Source: Google Finance) after the company beat Wall Street estimates for third-quarter profit, on strong sales in its industrial business. Nordson benefited from increased sales of the company’s tools used for dispensing adhesives, coatings and sealants used in construction and food packaging. Nordson’s largest segment, industrial precision solutions, posted a 10% yearly increase in quarterly sales offsetting the decrease in sales in its medical and advanced technology segment by 2% and 11%, respectively, during the quarter. Advanced Technology Solutions segment sequentially grew compared to second quarter, as order entry steadily improves in electronics end markets. Adjusted net income was $138 million, a decrease from the prior year adjusted net income of $147 million. EBITDA in the third quarter was $208 million, or 31% of sales, compared to prior year EBITDA of $208 million, or 32% of sales. EBITDA was flat as improved gross margins were offset by higher selling and administrative expenses, including the first-year effect of the ARAG acquisition. Gross margin expanded to 55.8% from 55.5% last year.
NDSN in the third quarter of FY 24 has reported the adjusted earnings per share of $2.41, beating the analysts’ estimates for the adjusted earnings per share of $2.33, according to LSEG data. The company had reported the adjusted revenue of $661.6 billion in the third quarter of FY 24, beating the analysts’ estimates for revenue of $656.2 million and up 2% year-over-year. The third quarter 2024 sales included a favorable acquisition impact of 4%, partially offset by an organic sales decrease of 1% and unfavorable currency translation of 1%. The organic sales decrease was driven by lower demand in electronics and medical product lines, partially offset by growth in packaging, nonwovens, and optical sensors product lines.
The Ohio-based company now expects its full year adjusted earnings to range between $9.45 and $9.65 per share, compared with the prior range of $9.35 to $9.75 per share.
The Company is entering the fourth quarter of fiscal 2024 with approximately $650 million in backlog, which continues to normalize and remain concentrated in systems businesses. Based on current visibility and order entry trends, the Company is increasing its full-year revenue guidance range to $2,665 million – $2,705 million, inclusive of revenue from the Atrion acquisition in the fiscal fourth quarter.