Stock trading in red: Nordson Corporation (NASDAQ: NDSN)

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Nordson Corporation (NASDAQ: NDSN) stock fell 3.43% on 20th May, 2019 (As of  7:03 am GMT-4; Source: Google finance) after the company posted lower than expected results for the second quarter of FY 19.

Stock trading in red: Nordson Corporation (NASDAQ: NDSN)

NDSN in the second quarter of FY 19 has reported the adjusted earnings per share of $1.54, missing the analysts’ estimates for the adjusted earnings per share of $1.59, as per Zacks Investment Research. The company had reported the adjusted revenue growth of 35.9 percent to $551.1 million in the second quarter of FY 19, missing the analysts’ estimates for revenue of $556.7 million. Backlog for the second quarter ended April 30, 2019 was $436 million, which is a decline of 2 percent compared to the same period a year ago. Impact from the Clada Medical Devices acquisition in fiscal 2018 was not significant.

Moreover, Adhesive Dispensing Systems sales fell by 1 percent compared to the prior year’s second quarter, that includes an rise in organic volume of 4 percent and a decline of 5 percent related to the unfavorable effects of currency translation as compared to the prior year. The company has reported operating margin in the segment of 30 percent in the second quarter.

Advanced Technology Systems sales fell by about 1 percent compared to the prior year’s second quarter, that includes the increase in organic volume of 2 percent and a decline of 2 percent related to the unfavorable effects of currency translation as compared to the prior year. In the second quarter of 2019, the company has reported operating margin in the segment of 23 percent.

Industrial Coating Systems sales rose by approximately 2 percent compared to the prior year’s second quarter, that comprise of a rise in organic volume of 4 percent and a decline of 3 percent related to the unfavorable effects of currency translation as compared to the prior year. The company has reported operating margin in the segment of 22 percent in the quarter.

For FY 19, NDSN expect organic growth to be in the low single digits for fiscal 2019. The company remains confident in the ability to generate approximately 100 basis points of operating and EBITDA margin improvement.

Additionally, NDSN declared a third quarter 2019 cash dividend in the amount of $0.35 per common share, payable on June 11, 2019 to shareholders of record as of the close of business on May 28, 2019.

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