The 10-second takeaway
For the quarter ended Oct. 31 (Q4), Nordson beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share increased significantly.
Margins dropped across the board.
Nordson notched revenue of $438.7 million. The eight analysts polled by S&P Capital IQ hoped for a top line of $418.0 million on the same basis. GAAP reported sales were 33% higher than the prior-year quarter's $331.0 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 $1.07. The nine earnings estimates compiled by S&P Capital IQ averaged $1.03 per share. GAAP EPS of $1.04 for Q4 were 28% higher than the prior-year quarter's $0.81 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 55.0%, 430 basis points worse than the prior-year quarter. Operating margin was 23.6%, 90 basis points worse than the prior-year quarter. Net margin was 15.4%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $341.7 million. On the bottom line, the average EPS estimate is $0.76.
Next year's average estimate for revenue is $1.60 billion. The average EPS estimate is $4.00.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 160 members out of 167 rating the stock outperform, and seven members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 42 give Nordson a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Nordson is outperform, with an average price target of $66.83.
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