Nordson Corp (NASDAQ:NDSN) stock rose 1.79% (As on May 23, 11:42:15 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 23. The increase in second quarter 2023 sales includes an organic increase of 1% and a favorable acquisition impact of 3%, offset by unfavorable currency translation of 2%. The organic sales increase was driven by strong 7% growth in Asia Pacific. Adjusted net income was $130 million, a $12 million decrease from the prior year earnings of $142 million. The decrease was driven by lower operating profit and increased interest expense. Adjusted operating profit, excluding severance costs, totaled $176 million, or 27% of sales, compared to prior year adjusted operating profit of $184 million. The 4% decrease in operating profit was driven by the impact of unfavorable currency translation and sales mix. EBITDA for the second quarter of 2023 totaled $203 million, or 31% of sales.

NDSN in the second quarter of FY 23 has reported the adjusted earnings per share of $2.26, beating the analysts’ estimates for the adjusted earnings per share of $2.11. The company had reported the adjusted revenue growth of 2 percent to $650.17 million in the second quarter of FY 23, beating the analysts’ estimates for revenue of $638.73 million.

Moreover, Industrial Precision Solutions sales of $336 million represents organic growth of 9% over the prior year, offset by unfavorable currency translation impacts. The growth was driven primarily by robust demand in the polymer processing product lines and for products in the consumer non-durable end market across most regions. Medical and Fluid Solutions sales of $167 million decreased 3% compared to the prior year second quarter. Organic sales decreased 2% and currency had an unfavorable impact of 1%. The organic sales decrease was driven by significant softness in the medical fluid components and fluid solutions product lines, offset by strong demand for medical interventional solutions product lines. Advanced Technology Solutions sales of $148 million increased 1% compared to the prior year second quarter. Sales benefited from the acquisition impact of 12% partially offset by a decrease in organic sales of 10% and an unfavorable currency impact of 2%.

Nordson expects FY 2023 EPS to be in the range of $8.90-$9.30 versus the analyst consensus of $9.07. Backlog entering the second half of fiscal 2023 remains strong at $950 million and continues to be heavily weighted toward systems and medical interventional solutions.