NASDAQ$NDSN

Nordson Corporation · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Nordson achieved record quarterly sales, operating profit, and earnings per share, driven by strong demand across all end markets and the successful execution of the Ascend strategy.

Nordson Corporation reported record third-quarter results with sales of $647 million, a 20% increase year-over-year. Operating profit increased by 57% to $188 million, and earnings per share rose by 70% to $2.42. The company raised its full-year revenue and earnings guidance, expecting continued strength in order entry and backlog.

  • Sales were $647 million, a 20% increase over the prior year.
  • Operating profit was $188 million, a 57% increase over the prior year adjusted operating profit.
  • Earnings were $2.42 per diluted share, a 70% increase over the prior year adjusted earnings per share.
  • Increased prior fiscal 2021 full-year revenue guidance range to 11% to 12% growth over prior year, and earnings guidance range by approximately 7% to $7.75 to $7.95 per diluted share.

Headline financials

Total Revenue

$647M

Previous: $538M+20.2%
EPS (adj)

$2.42

Previous: $1.42+70.4%
EBITDA

$215M

Previous: $148M+45.3%
Gross Margin

56.5%

No prior period
Capital Expenditures

-$28.1M

Previous: -$36.1M+22.2%
Free Cash Flow

$114M

Previous: $50.9M+124.2%
Net Income

$142M

Previous: $87M+63.5%
Operating Income

$188M

Previous: $112M+68.0%
Gross Profit

$365M

Previous: $281M+30.1%
Cash & Equivalents

$174M

Previous: $222M-21.4%
Total Assets

$3.67B

Previous: $3.82B-3.9%
Stock-Based Comp

$4.08M

Previous: $2.97M+37.3%

Revenue & EPS history

Nordson · Revenue · Quarterly

$647M

Q3 2021+20.2%vs Q3 2020
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Nordson · $647M total across 2 segments · Q3 2021

  • Industrial Precision Solutions
    $345M+19.5%
  • Advanced Technology Solutions
    $301M+20.9%

Forward guidance

The Company expects full year sales growth in fiscal 2021 to be approximately 11% to 12% over fiscal year 2020. Additionally, the Company is now forecasting full year 2021 earnings per diluted share in the range of $7.75 to $7.95.

Tailwinds

  • Full year sales growth in fiscal 2021 expected to be approximately 11% to 12% over fiscal year 2020.
  • Forecasting full year 2021 earnings per diluted share in the range of $7.75 to $7.95.
  • Increased guidance midpoint represents a strong second half of 2021 with year-over-year sales growth of 14% and earnings growth of 47%.
  • Expecting to enter fiscal 2022 with a backlog approximately 70% greater than the prior year.
  • Continued strength in order entry and backlog.

Headwinds

  • 3% headwind from the second quarter 2021 divestiture of the screws and barrels product line.
  • Customer order patterns have clearly changed in terms of both volume and extended shipment request dates during this dynamic environment.
  • External supply chain headwinds.
  • External labor headwinds.
  • Possible effects of events beyond our control, such as political unrest, acts of terror, natural disasters and pandemics, including the current coronavirus (COVID-19) pandemic

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 2021

Historical avgQ3 2021

+0.3%

Avg return

Earnings day

+0.4%

Avg return

5 days after

-0.3%

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%+8.9%+6.4%
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%
Q4 2008+2.1%
Q2 2010+2.1%
Q4 2010+2.1%
Q3 2009+0.2%
Q3 2010+0.2%
Q4 2009+0.2%

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