Nordson (NASDAQ:NDSN) reported impressive results for the second quarter of Fiscal Year 2023, as both earnings and revenue surpassed estimates. The company, however, lowered its full-year adjusted earnings outlook.
NDSN manufactures dispensing equipment for consumer and industrial adhesives, sealants, and coatings.
Q2 revenues of $650 million increased 2% year-over-year and came above the Street’s estimate of $638.7 million. The top line benefitted from 1% organic volume growth and a 3% favorable acquisition impact, partially offset by currency exchange headwinds.
Meanwhile, the company posted adjusted earnings of $2.26 per share, higher than the Street’s estimate of $2.11 per share. Nevertheless, the reported figure compares unfavorably with $2.43 in the prior year’s quarter.
Looking forward, the company said it entered the second half of Fiscal Year 2023 with a strong order backlog. Nordson expects fiscal fourth-quarter revenue to increase by a low-to-mid single digit compared to last year’s quarter.
Despite this, the company reduced its Fiscal 2023 adjusted earnings guidance to the range of $8.90 to $9.30, from $8.75 to $9.50 previously.
Is NDSN Stock a Good Buy?
Nordson’s well-diversified business and efforts to support organic growth with strategic acquisitions are encouraging. Further supporting the bull case is NDSN’s impressive dividend history. The company has been increasing payouts every year since 2010.
Wall Street analysts are optimistic about Nordson stock and have a Strong Buy consensus rating, which is based on four Buys and one Hold. The average stock price target of $252.20 implies 16.6% upside potential.
