Nordson Corp (NASDAQ:NDSN) stock fell 8.19% (As on May 21, 11:23:58 AM UTC-4, Source: Google Finance) after the company cut its full-year revenue forecast on slow recovery of electronics and semiconductor markets. 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%. The organic sales increase was driven primarily by industrial coatings systems and packaging product lines. Medical and Fluid Solutions sales of $169 million increased 2% compared to the prior year second quarter. The increase was driven by growth in the fluid and interventional solutions product lines. Advanced Technology Solutions sales of $115 million decreased 22% compared to the prior year second quarter. The organic sales decrease was driven by weakness across the segment. Advanced Technology Solutions segment remained impacted by the electronics cycle.
NDSN in the second quarter of FY 24 has reported the adjusted earnings per share of $2.34, beating the analysts’ estimates for the adjusted earnings per share of $2.31, as per LSEG data. The company had reported flat adjusted revenue growth to $650.6 million in the second quarter of FY 24, missing the analysts’ estimates for revenue of $665.1 million. Adjusted net income was $135 million, a decrease from the prior year adjusted net income of $141 million. EBITDA in the second quarter was $203 million, or 31% of sales, compared to prior year 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. The organic sales decreased 4%, driven by ongoing pressure in electronics product lines, partially offset by growth in industrial coatings systems and fluid solutions product lines.
It now expects full-year 2024 revenue growth to be flat to 2%, compared with the prior year, down from its previous expectation of growth between 4% and 7%. Nordson said it expects 2024 adjusted profit between $9.35 and $9.75 per share, while analysts were expecting $10.23 per share, according to LSEG data. It forecast third-quarter sales to be between $645 million and $670 million, with adjusted profit in the range of $2.25 to $2.40 per share. Analysts were expecting third-quarter revenue of $705.1 million and a profit of $2.72 per share.
The company is also experiencing increased pressure from the agriculture cycle in Europe, which is causing OEMs to slow investments in spray implement purchases.