A Preview Of Nordson's Earnings
On Monday, February 22, Nordson (NASDAQ:NDSN) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.
Net Income, Earnings, And Earnings Per Share
Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.
Earnings And Revenue
Analysts expect Nordson earnings of $1.06 per share. Revenue will likely be around $509.88 million, according to the consensus estimate. In the same quarter last year, Nordson reported EPS of $0.89 on revenue of $494.92 million.
What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?
Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.
If the company were to match the consensus estimate when it reports Monday, earnings would be up 19.1%. Revenue would be up 3.02% on a year-over-year basis. Nordson's reported EPS has stacked up against analyst estimates in the past like this:
EPS Estimate | 1.53 | 1.34 | 1.30 | 1.05 |
EPS Actual | 1.59 | 1.42 | 1.58 | 0.89 |
Revenue Estimate | 556.68 M | 503.38 M | 505.29 M | 501.30 M |
Revenue Actual | 558.52 M | 538.18 M | 529.48 M | 494.92 M |
Stock Performance
For a full 12 months, the return has risen by 13.89%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.
Do not be surprised to see the stock move on comments made during its conference call. Nordson is scheduled to hold the call at 08:30:00 ET and can be accessed here.
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