NASDAQ$NDSN

Nordson Corporation · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Nordson's Q3 2023 performance saw decreased sales but strong profitability amidst demand weakness in electronics and biopharma, with strategic focus on Ascend strategy and growth framework execution.

Nordson Corporation reported a 2% decrease in sales to $649 million for the third quarter of fiscal year 2023, with a net income of $128 million, or $2.22 per share. Despite the sales dip, the company maintained strong profitability with an EBITDA of $208 million, representing 32% of sales. The team remains focused on the execution of our Ascend strategy to achieve top tier growth with leading margins and returns.

  • Sales decreased by 2% to $649 million due to organic decline in electronics and biopharma markets.
  • EBITDA remained strong at $208 million, representing 32% of sales.
  • Earnings per share were $2.22, while adjusted earnings per share were $2.35.
  • The company is narrowing its full-year revenue growth guidance to 0% to 2% and adjusted earnings per share to $8.90 to $9.05.

Headline financials

Total Revenue

$649M

Previous: $662M-2.0%
EPS (adj)

$2.35

Previous: $2.49-5.6%
EBITDA

$208M

Previous: $213M-2.3%
Capital Expenditures

-$24.2M

Previous: -$39.4M+38.4%
Free Cash Flow

$104M

Previous: $102M+1.2%
Net Income

$128M

Previous: $142M-9.8%
Operating Income

$171M

Previous: $185M-7.5%
Gross Profit

$360M

Previous: $366M-1.4%
Cash & Equivalents

$143M

Previous: $129M+11.2%
Total Assets

$4.2B

Previous: $3.82B+9.8%
Stock-Based Comp

$5.86M

Previous: $7.62M-23.1%

Revenue & EPS history

Nordson · Revenue · Quarterly

$649M

Q3 2023-2%vs Q3 2022
Beat estimate in 9 of 15 quarters(60%)
ActualEstimate

Revenue by segment

Nordson · $649M total across 3 segments · Q3 2023

  • Industrial Precision Solutions
    $338M-0.8%
  • Medical and Fluid Solutions
    $171M
  • Advanced Technology Solutions
    $140M-56.5%

Forward guidance

The Company is narrowing its previously issued full-year revenue growth guidance to 0% to 2% over record fiscal 2022 and adjusted earnings guidance to the range of $8.90 to $9.05.

Tailwinds

  • Backlog remains strong at $890 million, heavily weighted toward systems and medical interventional solutions.
  • Order entry has been steady throughout the quarter.
  • Fourth quarter sales are expected to be the strongest of the year, increasing low-mid single digits over the prior year.
  • The acquisition of the ARAG Group is forecasted to add approximately $20-$30 million of sales.
  • Focus on Ascend strategy to achieve top tier growth with leading margins and returns.

Headwinds

  • Revenue growth guidance narrowed to 0% to 2%.
  • Demand weakness persists in electronics and biopharma end markets.
  • Organic sales decrease was driven by ongoing pressure in electronics, primarily semiconductor dispense applications, and biopharma end markets.
  • Adjusted earnings guidance narrowed to the range of $8.90 to $9.05.
  • Increased interest expense and lower operating profit.

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 2023

Historical avgQ3 2023

+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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