The Nordson Corporation (NASDAQ:NDSN) First-Quarter Results Are Out And Analysts Have Published New Forecasts
It's been a good week for Nordson Corporation (NASDAQ:NDSN) shareholders, because the company has just released its latest first-quarter results, and the shares gained 3.7% to US$274. It was a credible result overall, with revenues of US$633m and statutory earnings per share of US$1.90 both in line with analyst estimates, showing that Nordson is executing in line with expectations. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Check out our latest analysis for Nordson
Following the latest results, Nordson's ten analysts are now forecasting revenues of US$2.78b in 2024. This would be a credible 4.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to expand 10% to US$9.52. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.80b and earnings per share (EPS) of US$9.38 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$281, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Nordson, with the most bullish analyst valuing it at US$328 and the most bearish at US$240 per share. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await Nordson shareholders.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. The analysts are definitely expecting Nordson's growth to accelerate, with the forecast 6.5% annualised growth to the end of 2024 ranking favourably alongside historical growth of 4.9% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.2% per year. Factoring in the forecast acceleration in revenue, it's pretty clear that Nordson is expected to grow much faster than its industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Nordson analysts - going out to 2026, and you can see them free on our platform here.
You should always think about risks though. Case in point, we've spotted 2 warning signs for Nordson you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
