NASDAQ$NDSN

Nordson Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Nordson's Q3 2020 performance was impacted by organic sales decrease offset by Fluortek acquisition and unfavorable currency impacts.

Nordson Corporation reported a 4% year-over-year decrease in sales, totaling $538 million for the third quarter of fiscal year 2020. Earnings per diluted share were $1.49, while adjusted earnings per diluted share were $1.42, a 12% decrease from the prior year. The sales decrease was primarily organic, with the acquisition of Fluortek being offset by unfavorable currency impacts.

  • Sales were $538 million, a 4% year-over-year decrease.
  • Operating profit was $112 million, or 21% of sales.
  • EBITDA was $148 million, or 28% of sales.
  • Earnings were $1.49 per diluted share.

Headline financials

Total Revenue

$538M

Previous: $560M-3.9%
EPS (adj)

$1.42

Previous: $1.62-12.3%
EBITDA

$148M

No prior period
Capital Expenditures

-$36.1M

Previous: -$46M+21.5%
Free Cash Flow

$50.9M

Previous: $47.9M+6.2%
Net Income

$87M

Previous: $93.9M-7.4%
Operating Income

$112M

Previous: $130M-14.0%
Gross Profit

$281M

Previous: $303M-7.2%
Cash & Equivalents

$222M

Previous: $148M+50.0%
Total Assets

$3.82B

Previous: $3.49B+9.4%
Stock-Based Comp

$2.97M

Previous: $3.79M-21.6%

Revenue & EPS history

Nordson · Revenue · Quarterly

$538M

Q3 2020-3.9%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Nordson · $538M total across 2 segments · Q3 2020

  • Industrial Precision Solutions
    $289M-5.8%
  • Advanced Technology Solutions
    $249M-1.5%

Forward guidance

The company expects fiscal fourth quarter revenue to be commensurate with to slightly better than fiscal third quarter revenue based on the current order entry trends and order backlog. Operating profit is forecasted to improve modestly in the fiscal fourth quarter compared to the third quarter, as cost reduction initiatives begin to deliver benefits.

Tailwinds

  • Revenue expected to be commensurate with or slightly better than Q3
  • Order entry trends are stable
  • Order backlog is $423 million
  • Operating profit forecasted to improve modestly
  • Cost reduction initiatives expected to deliver benefits

Headwinds

  • Short-term environment remains difficult to predict
  • Macro-economic environment is challenging
  • Sales decreased 4% year-over-year
  • Adjusted earnings per diluted share decreased 12% from prior year
  • Organic volume declines

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 Q3 2020

Historical avgQ3 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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