Latest news with #NDSN
Yahoo
a day ago
- Business
- Yahoo
3 Reasons NDSN is Risky and 1 Stock to Buy Instead
Since December 2024, Nordson has been in a holding pattern, posting a small return of 1.7% while floating around $214.91. Is now the time to buy Nordson, or should you be careful about including it in your portfolio? Get the full breakdown from our expert analysts, it's free. We're sitting this one out for now. Here are three reasons why you should be careful with NDSN and a stock we'd rather own. In addition to reported revenue, organic revenue is a useful data point for analyzing Professional Tools and Equipment companies. This metric gives visibility into Nordson's core business because it excludes one-time events such as mergers, acquisitions, and divestitures along with foreign currency fluctuations - non-fundamental factors that can manipulate the income statement. Over the last two years, Nordson's organic revenue averaged 3.7% year-on-year declines. This performance was underwhelming and implies it may need to improve its products, pricing, or go-to-market strategy. It also suggests Nordson might have to lean into acquisitions to grow, which isn't ideal because M&A can be expensive and risky (integrations often disrupt focus). While long-term earnings trends give us the big picture, we also track EPS over a shorter period because it can provide insight into an emerging theme or development for the business. Nordson's flat EPS over the last two years was worse than its 1.9% annualized revenue growth. This tells us the company became less profitable on a per-share basis as it expanded. Free cash flow isn't a prominently featured metric in company financials and earnings releases, but we think it's telling because it accounts for all operating and capital expenses, making it tough to manipulate. Cash is king. As you can see below, Nordson's margin dropped by 5.1 percentage points over the last five years. If its declines continue, it could signal increasing investment needs and capital intensity. Nordson's free cash flow margin for the trailing 12 months was 17%. Nordson falls short of our quality standards. That said, the stock currently trades at 20.7× forward P/E (or $214.91 per share). At this valuation, there's a lot of good news priced in - you can find more timely opportunities elsewhere. We'd suggest looking at one of our all-time favorite software stocks. Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Sign in to access your portfolio
Yahoo
4 days ago
- Business
- Yahoo
Nordson Stock: Is NDSN Outperforming the Industrial Sector?
With a market cap of $12 billion, Nordson Corporation (NDSN) engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids. The Westlake, Ohio-based company operates through three segments: Industrial Precision Solutions, Medical and Fluid Solutions, and Advanced Technology Solutions. Companies valued at $10 billion or more are generally classified as 'large-cap' stocks, and Nordson fits this description perfectly. The company's products are widely used in industries such as electronics, medical, packaging, and automotive for applying adhesives, coatings, sealants, and biomaterials. It emphasizes high-performance engineering and a diversified industrial base. Meta's Mark Zuckerberg Says the Technology They're Developing Will 'See What You See and Hear What You Hear' The Next Trillion-Dollar Boom? 3 Stocks to Buy with 300 Million Humanoid Robots on the Horizon. 'Record-Shattering': Warren Buffett's Berkshire Hathaway Has Now Paid $101 Billion in Cumulative Federal Income Tax Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. Shares of Nordson have dipped 20.2% from its 52-week high of $266.86. NDSN stock has risen 4.5% over the past three months, underperforming the Industrial Select Sector SPDR Fund's (XLI) 8.8% increase. In the long term, NDSN stock has gained 1.8% on a YTD basis, whereas XLI has returned 9.2%. In addition, over the past 52 weeks, shares of Nordson have dropped 7.9%, lagging behind XLI's 17% return. The stock has remained below its 50-day and 200-day moving averages since mid-December last year. Yet, it has risen above its 50-day moving average since early May. Nordson's stock surged 6.8% following the release of its Q2 2025 results on May 28. Quarterly sales rose 5% year-over-year to $683 million, surpassing Wall Street expectations, primarily driven by an 8% contribution from the Atrion acquisition. The company delivered strong adjusted EBITDA of $217.2 million, with a robust margin of 32%, reflecting continued operational excellence and gains from acquisitions. Meanwhile, adjusted EPS increased 3.4% from the prior-year quarter to $2.42, beating the consensus estimate. Compared to its peer, Ingersoll Rand Inc. (IR) has lagged behind NDSN stock. IR stock has dropped 9.4% on a YTD basis and 11.8% over the past 52 weeks. Although the stock has underperformed the sector over the past year, analysts are moderately optimistic about its stock's prospects. NDSN stock has a consensus rating of 'Moderate Buy' from the 10 analysts covering the stock, and as of writing, it is trading below the mean price target of $248.44. On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on
Yahoo
30-05-2025
- Business
- Yahoo
NDSN Q1 Earnings Call: Revenue Misses Amid Segment Shifts, Guidance Raised for Next Quarter
Manufacturing company Nordson (NASDAQ:NDSN) missed Wall Street's revenue expectations in Q1 CY2025 as sales rose 5% year on year to $682.9 million. Its non-GAAP EPS of $2.42 per share was 2.6% above analysts' consensus estimates. Is now the time to buy NDSN? Find out in our full research report (it's free). Revenue: $682.9 million (5% year-on-year growth) Adjusted EPS: $2.42 vs analyst estimates of $2.36 (2.6% beat) Revenue Guidance for Q2 CY2025 is $730 million at the midpoint, above analyst estimates of $713.5 million Adjusted EPS guidance for Q2 CY2025 is $2.65 at the midpoint, above analyst estimates of $2.58 Adjusted EBITDA Margin: 31.8% Organic Revenue fell 2.4% year on year (-3.7% in the same quarter last year) Market Capitalization: $11.14 billion Nordson's first quarter results reflected a mix of acquisition-driven growth and ongoing challenges in select legacy segments. CEO Sundaram Nagarajan highlighted that momentum in Advanced Technology Systems, particularly from semiconductor and electronics customers, and the solid performance of the recently acquired Atrion business helped offset organic revenue declines elsewhere. Management also pointed to continued softness in industrial system sales, especially within industrial coatings and polymer processing, citing weaker end-market demand compared to last year. The company's operational focus and cost discipline supported margin expansion, with Nagarajan noting that the integration of Atrion was exceeding expectations and contributing positively to both sales and profitability. Looking ahead, Nordson's guidance for the next quarter is underpinned by sustained demand in electronics and semiconductor markets, an improving outlook for medical fluid components, and incremental benefits from restructuring actions. Nagarajan emphasized, 'We are seeing positive order entry momentum in electronics, precision agriculture, and select medical product lines,' suggesting this will drive sequential improvement. Management expects the effects of destocking in medical interventional products to continue fading, while recent divestitures are anticipated to sharpen the company's focus on higher-margin offerings. However, CFO Daniel Hopgood cautioned that ongoing trade policy uncertainties and automotive market headwinds could still impact customer investment decisions, indicating the outlook remains sensitive to external factors. Management attributed the quarter's performance to strong contributions from recent acquisitions and targeted restructuring, even as some core segments continued to face demand headwinds. Atrion acquisition outperformance: The Atrion medical components business delivered higher-than-anticipated sales and margin contribution, with CEO Nagarajan noting 'customer adoption of Atrion's differentiated products' and successful operational integration exceeding initial projections. Advanced Technology momentum: Demand in the Advanced Technology Systems (ATS) segment was fueled by investments in next-generation computing, AI, and cloud infrastructure, with over half of ATS revenue now tied to semiconductor and high-performance computing. Management credited strong order entry, particularly from Asian customers, as a key driver. Industrial segment softness persists: The Industrial Precision Solutions (IPS) business saw continued weakness, mostly in industrial coatings and polymer processing tied to automotive end markets. However, the precision agriculture (ARAG) and nonwovens systems lines posted double-digit growth, partially offsetting declines. Medical segment portfolio reshaping: The announced divestiture of select medical contract manufacturing product lines is expected to increase the medical segment's focus on proprietary components, improve margin profile by an estimated 100 basis points, and free resources for core growth areas. Operational cost actions: Targeted restructuring across underperforming businesses and the completion of major facility transitions are anticipated to yield over $50 million in annual savings by 2026, supporting margin resilience despite mixed demand. Management's outlook centers on continued demand in electronics and medical components, as well as incremental margin benefits from portfolio optimization and restructuring. Electronics and semiconductor growth: Ongoing investment in semiconductor manufacturing, AI-related computing, and cloud infrastructure is expected to sustain strong order trends in the ATS segment. Management sees Asian markets as the primary near-term growth engine, with North American opportunities still to come. Medical segment recovery and focus: The medical segment's organic growth is expected to recover as destocking abates and the segment pivots toward higher-value, proprietary components following the contract manufacturing divestiture. Atrion's product pipeline and integration are anticipated to further boost segment performance. Restructuring and external risks: Cost structure improvements from recent restructuring and facility consolidation are projected to protect margins. However, management remains watchful of macroeconomic uncertainty, including trade policy changes and persistent automotive sector weakness, which could affect customer investments and order timing. In the coming quarters, the StockStory team will be closely monitoring (1) the trajectory of order entry in Advanced Technology Systems—especially semiconductor and electronics demand, (2) the pace of recovery in medical components as destocking trends unwind, and (3) the impact of portfolio reshaping on segment margins and overall profitability. Execution on restructuring savings and resilience to external market shifts will also be key to tracking Nordson's progress. Nordson currently trades at a forward P/E ratio of 20.1×. In the wake of earnings, is it a buy or sell? Find out in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Growth Stocks for this month. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
3 Industrials Stocks with Mounting Challenges
Industrials businesses quietly power the physical things we depend on, from cars and homes to e-commerce infrastructure. But they are at the whim of volatile macroeconomic factors that influence capital spending (like interest rates), and the market seems convinced that demand will slow. Due to this bearish outlook, the industry has tumbled by 11.2% over the past six months. This drop was worse than the S&P 500's 2.5% decline. Investors should tread carefully as timing cyclical companies is a challenging task, and any misstep can have you catching a falling knife. Keeping that in mind, here are three industrials stocks we're swiping left on. Market Cap: $11.14 billion Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings. Why Should You Dump NDSN? Organic revenue growth fell short of our benchmarks over the past two years and implies it may need to improve its products, pricing, or go-to-market strategy Earnings per share were flat over the last two years and fell short of the peer group average Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 4.5 percentage points Nordson's stock price of $206.50 implies a valuation ratio of 18.8x forward P/E. To fully understand why you should be careful with NDSN, check out our full research report (it's free). Market Cap: $144.4 billion Originally founded in 1906 as a thermostat company, Honeywell (NASDAQ:HON) is a multinational conglomerate known for its aerospace systems, building technologies, performance materials, and safety and productivity solutions. Why Do We Think Twice About HON? Core business is underperforming as its organic revenue has disappointed over the past two years, suggesting it might need acquisitions to stimulate growth Estimated sales growth of 3.3% for the next 12 months is soft and implies weaker demand Free cash flow margin dropped by 3.2 percentage points over the last five years, implying the company became more capital intensive as competition picked up Honeywell is trading at $226 per share, or 21.1x forward P/E. Dive into our free research report to see why there are better opportunities than HON. Market Cap: $1.15 trillion Originally founded by Martin Eberhard and Marc Tarpenning in 2003, Tesla (NASDAQ:TSLA) is an electric vehicle company accelerating the world's transition to sustainable energy. Why Does TSLA Fall Short? Tesla's scale advantage in EV production leads to gross margins that exceed incumbents such as General Motors and Ford. However, a softer macroeconomic backdrop and tariff pressures have weighed on automobile sales, which are highly cyclical. The company's execution ability is a question mark given its long history of delays, such as the Cybertruck and Robotaxi launches. Its sizeable investments in projects with uncertain return timelines, like Optimus, also raise skepticism from investors. On the bright side, Tesla's Megapack product solves a critical problem for utilities needing renewable energy storage solutions. This innovation has made the energy segment the most profitable and fastest-growing business line for the company. At $364.59 per share, Tesla trades at 136.6x forward price-to-earnings. If you're considering TSLA for your portfolio, see our FREE research report to learn more. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Nordson: Fiscal Q2 Earnings Snapshot
WESTLAKE, Ohio (AP) — WESTLAKE, Ohio (AP) — Nordson Corp. (NDSN) on Wednesday reported fiscal second-quarter net income of $112.4 million. The Westlake, Ohio-based company said it had net income of $1.97 per share. Earnings, adjusted for one-time gains and costs, came to $2.42 per share. The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $2.36 per share. The maker of adhesives and industrial coatings posted revenue of $682.9 million in the period, also surpassing Street forecasts. Four analysts surveyed by Zacks expected $673.6 million. For the current quarter ending in July, Nordson expects its per-share earnings to range from $2.55 to $2.75. The company said it expects revenue in the range of $710 million to $750 million for the fiscal third quarter. _____ This story was generated by Automated Insights ( using data from Zacks Investment Research. Access a Zacks stock report on NDSN at Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
