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Nordson (NDSN) to Report Q3 Earnings: What's in the Cards?

Zacks Equity Research
·4 min read

Nordson Corporation NDSN is set to release third-quarter fiscal 2022 (ended July 2022) results on Aug 22, after market close.

The Zacks Consensus Estimate for NDSN’s earnings for the fiscal third quarter has been revised 3.1% upward in the past 90 days. Nordson’s earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed the mark in one, the average beat being 4.5%.

Let’s see how things are shaping up for Nordson this earnings season.

Key Factors and Estimates for Q3

Nordson is expected to have benefited from solid demand in the electronics, medical and industrial end markets in the fiscal third quarter. Also, a well-diversified business structure, product launches and a large customer base in various industries, including packaging, electronics, non-wovens and others are likely to have augmented its top line in the to-be-reported quarter.

NDSN’s NDC Technologies takeover (November 2021) expanded its test and inspection platform and strengthened its position in the electronics end market. The buyout of vivaMOS Ltd. (in September 2020) added vigor to its test and inspection capabilities. Also, NDSN acquired Fluortek, Inc. in June 2020, strengthening its medical product lines. These acquisitions are expected to have contributed to Nordson’s top line in the fiscal third quarter.  However, raw material cost-inflation, supply-chain disruptions and labor constraints are likely to have weighed on NDSN’s performance in the fiscal third quarter. Given Nordson’s international presence, a stronger U.S. dollar might have depressed its overseas business performance in the fiscal quarter under review.

The Zacks Consensus Estimate for Nordson’s revenues is pegged at $652 million for the fiscal third quarter, suggesting a 0.8% increase from the year-ago fiscal quarter’s reported number. Earnings estimates are pegged at $2.45, indicating an increase of 1.2% from the year-ago fiscal quarter’s reported figure.

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for Nordson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But this is not the case here, as you will see below.

You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.  You can see the the complete list of today’s Zacks #1 Rank stocks here.

Earnings ESP: Nordson has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.45.

Zacks Rank: Nordson currently carries a Zacks Rank #3.

Nordson Corporation Price, Consensus and EPS Surprise

Nordson Corporation price-consensus-eps-surprise-chart | Nordson Corporation Quote

Highlights of Q2 Earnings

Nordson reported mixed second-quarter fiscal 2022 (ended Apr 30, 2022) results, wherein earnings beat the Zacks Consensus Estimate by 7.1%, while sales missed estimates by 0.7%. NDSN’s adjusted earnings were $2.43 per share in the reported quarter, beating the Zacks Consensus Estimate of $2.27. The bottom line increased 14.6% from $2.12 reported in the last fiscal year’s comparable quarter. NDSN’s revenues were $635.4 million, reflecting an increase of 7.8% from the year-ago fiscal quarter’s reported number. Organic sales expanded 7%, driven by healthy end-market businesses, including industrial and electronics.

Stocks to Consider

Here are some companies that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.

Deere & Company DE has an Earnings ESP of +1.83% and a Zacks Rank #3. DE is slated to release fiscal third-quarter 2022 financial numbers on Aug 19.

The Zacks Consensus Estimate for DE fiscal third-quarter earnings has increased 0.3% over the past 60 days. Deere has a stellar surprise history, with earnings having outperformed the Zacks Consensus Estimate in each of the trailing four quarters, the average beat being approximately 14.2%.

Advance Auto Parts, Inc. AAP has an Earnings ESP of +0.48% and a Zacks Rank of 3. AAP is set to release fiscal second-quarter 2022 results on Aug 23.

The Zacks Consensus Estimate for Advance Auto’s fiscal second-quarter earnings has been revised 0.5% downward in the past 60 days. AAP’s earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters, missing estimates in one. The average surprise is 9.2%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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Deere & Company (DE) : Free Stock Analysis Report
 
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