NASDAQ$NDSN

Nordson Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Nordson's sales decreased by 4% due to organic volume decline and unfavorable currency translation, but adjusted EPS increased slightly.

Nordson Corporation reported sales of $529 million, a 4% decrease compared to the prior year. GAAP diluted EPS was $1.58, while adjusted diluted EPS was $1.58 compared to $1.54 in the prior year. The company is withdrawing its fiscal year 2020 guidance due to COVID-19 uncertainties.

  • Sales decreased by 4% compared to the prior year's second quarter.
  • GAAP diluted EPS was $1.58.
  • Adjusted diluted EPS was $1.58 compared to $1.54 in the prior year’s second quarter.
  • Backlog increased by 6% compared to the same period a year ago.

Headline financials

Total Revenue

$529M

Previous: $551M-3.9%
EPS (adj)

$1.58

Previous: $1.54+2.6%
EBITDA

$152M

No prior period
Capital Expenditures

-$25.8M

Previous: -$26.6M+2.9%
Free Cash Flow

$66.2M

Previous: $65.3M+1.4%
Net Income

$92.1M

Previous: $91.9M+0.2%
Operating Income

$125M

Previous: $129M-3.0%
Gross Profit

$290M

Previous: $302M-4.0%
Cash & Equivalents

$306M

Previous: $149M+105.3%
Total Assets

$3.74B

Previous: $3.48B+7.7%
Stock-Based Comp

-$72K

Previous: $4.87M-101.5%

Revenue & EPS history

Nordson · Revenue · Quarterly

$529M

Q2 2020-3.9%vs Q2 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Nordson · $529M total across 2 segments · Q2 2020

  • Industrial Precision Solutions
    $282M-6.5%
  • Advanced Technology Solutions
    $247M-0.8%

Forward guidance

Due to the uncertainties of the duration and impact of the COVID-19 pandemic, the company is suspending its previously announced annual guidance for fiscal 2020.

Tailwinds

  • The company has a strong backlog heading into the second half of the year.
  • The company has a solid foundation.
  • The company is diversified.
  • The company has a strong balance sheet.
  • The company will stay focused on the health and safety of our employees and the success of our customers.

Headwinds

  • The company has seen a softening in order trends over the last six weeks.
  • This is a dynamic environment, making it difficult to accurately forecast the impact this pandemic will have on our business for the remainder of the fiscal year.
  • Uncertainties of the duration and impact of the COVID-19 pandemic.
  • The company is suspending its previously announced annual guidance for fiscal 2020.
  • The company has seen a softening in order trends.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

+0.3%

Avg return

Earnings day

+0.2%

Avg return

5 days after

-0.5%

Avg return

30 days after

54%

37 / 69 earnings

Positive

+15.8%

Q4 2017

Best reaction

-14.8%

Q3 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+1.8%
Q1 2026-1.7%-1.5%-12.2%
Q4 2025-0.3%+0.0%+10.5%
Q3 2025+2.9%+6.0%+5.4%
Q2 2025+6.8%+8.5%+9.9%
Q1 2025+0.3%-1.3%-6.4%
Q4 2024-9.4%-11.4%-20.9%
Q3 2024+6.9%+7.4%+6.7%
Q2 2024-10.5%-12.4%-14.5%
Q1 2024+3.5%+2.6%+1.7%
Q4 2023+5.1%+7.1%+5.8%
Q3 2023+1.5%+2.7%-2.0%
Q2 2023+1.1%+1.7%+8.8%
Q1 2023-13.9%-10.5%-15.6%
Q4 2022+1.5%-2.1%+2.3%
Q3 2022-2.1%-4.7%-10.4%
Q2 2022+2.7%+7.1%-3.8%
Q1 2022-3.5%-0.9%-1.1%
Q4 2021-5.9%-7.2%-9.9%
Q3 2021+2.2%+3.4%+4.0%
Q2 2021+7.4%+9.8%+8.0%
Q1 2021-0.0%+2.4%+6.3%
Q4 2020-2.9%-0.5%+1.2%
Q3 2020-7.1%-8.5%-6.6%
Q2 2020+1.7%+1.0%+12.4%
Q1 2020-0.3%-4.6%-37.9%
Q4 2019-1.6%-0.5%-1.2%
Q3 2019-3.0%-4.6%+5.9%
Q2 2019-1.0%-5.4%-1.6%
Q1 2019-3.0%-0.5%-8.1%
Q4 2018+7.7%+3.7%+10.9%
Q3 2018-0.9%+0.7%+7.1%
Q2 2018-4.2%-5.5%-3.3%
Q1 2018-2.0%-1.3%-3.9%
Q4 2017+15.8%+14.5%+19.5%
Q3 2017-10.2%-12.3%-5.3%
Q2 2017-5.9%-7.6%-8.2%
Q1 2017+0.1%+0.5%+2.0%
Q4 2016+5.2%+7.2%+7.0%
Q3 2016+10.6%+8.0%+7.1%
Q2 2016+15.7%+16.8%+12.2%
Q1 2016+9.1%
Q4 2015-8.1%
Q3 2015-14.8%
Q2 2015-1.4%
Q1 2015+0.0%
Q4 2014+2.3%
Q3 2014+0.8%
Q2 2014+9.2%
Q1 2014+2.0%
Q4 2013-2.3%
Q3 2013+0.1%
Q2 2013-7.4%
Q1 2013-9.8%
Q4 2012-1.4%
Q3 2012+10.6%
Q2 2012+10.5%
Q1 2012+5.0%
Q4 2011-1.9%
Q3 2011-3.0%
Q2 2011-1.1%
Q1 2010+1.5%
Q1 2011+3.3%
Q2 2010+2.1%
Q4 2010+2.1%
Q4 2008+2.1%
Q4 2009+0.2%
Q3 2009+0.2%
Q3 2010+0.2%

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