The 10-second takeaway
For the quarter ended April 30 (Q2), Nordson missed slightly on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Nordson chalked up revenue of $315.2 million. The six analysts polled by S&P Capital IQ foresaw revenue of $321.2 million on the same basis. GAAP reported sales were 1.2% lower than the prior-year quarter's $318.9 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.84. The eight earnings estimates compiled by S&P Capital IQ forecast $0.87 per share. GAAP EPS of $0.80 for Q2 were 16% lower than the prior-year quarter's $0.95 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 60.2%, 180 basis points worse than the prior-year quarter. Operating margin was 24.4%, 500 basis points worse than the prior-year quarter. Net margin was 16.5%, 400 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $326.6 million. On the bottom line, the average EPS estimate is $0.86.
Next year's average estimate for revenue is $1.26 billion. The average EPS estimate is $3.24.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 156 members out of 164 rating the stock outperform, and eight members rating it underperform. Among 41 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Nordson a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nordson is hold, with an average price target of $58.60.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.