What's in the Offing for Nordson (NDSN) in Q3 Earnings?
Nordson Corporation NDSN is slated to release third-quarter fiscal 2023 (ended Jul 31, 2023) results on Aug 21, after market close.
The Zacks Consensus Estimate for fiscal third-quarter earnings has been revised downward by a penny in the past 60 days. The company has trumped the Zacks Consensus Estimate for earnings in three of the preceding four quarters, while missing in one. The average beat was 3.1%.
Let’s see how things have shaped up for Nordson this earnings season.
Nordson Corporation Price and EPS Surprise
Nordson Corporation price-eps-surprise | Nordson Corporation Quote
Factors to Note
Strong customer demand in industrial, consumer non-durable and medical interventional end markets is expected to have aided Nordson’s fiscal third-quarter performance. The Industrial Precision Solutions segment is expected to have benefited from steady demand in industrial, consumer non-durable and polymer processing product lines. Contributions from the June 2023 acquisition of ARAG Group are expected to have boosted the segment’s performance. The acquisition has expanded NDSN’s core capabilities in precision dispense technology.
However, a decrease in electronics dispense and CyberOptics product lines due to softness in the electronics end market is likely to have hampered the Advanced Technology Solutions segment’s performance. The November 2022 acquisition of CyberOptics Corporation, which expanded NDSN’s semiconductor test and inspection capabilities, is expected to have partly offset the adversity.
Weakness in the medical fluid components product lines is expected to have weighed on the Medical and Fluid Solutions segment’s revenues in the to-be-reported quarter. Cost inflation is likely to have hurt Nordson’s margins in the to-be-reported quarter.
Given NDSN’s international exposure, foreign currency headwinds are expected to have dented the company’s top-line performance.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Nordson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But this is not the case here, as you will see below.
Earnings ESP: Nordson has an Earnings ESP of 0.00% as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.31. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nordson currently carries a Zacks Rank #2.
Highlights of Q2 Earnings
Nordson’s second-quarter fiscal 2023 (ended Apr 30, 2023) adjusted earnings of $2.26 per share beat the Zacks Consensus Estimate of $2.10. The bottom line decreased 7% from $2.43 per share in the year-ago fiscal quarter. Total revenues of $650.2 million increased 2.3% year over year and beat the Zacks Consensus Estimate of $638 million.
Stocks to Consider
Here are some companies that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Deere & Company DE has an Earnings ESP of +2.03% and a Zacks Rank #3. DE is slated to release third-quarter fiscal 2023 financial numbers on Aug 18. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deere’s fiscal third-quarter earnings has been revised downward by 0.4% in the past 60 days. However, the company has trumped the Zacks Consensus Estimate for earnings in three of the preceding four quarters, while missing in one. The average beat was 7.2%.
Bank Of Montreal BMO has an Earnings ESP of +1.91% and a Zacks Rank #3. The company is slated to release third-quarter fiscal 2023 results on Aug 29.
Bank Of Montreal’s earnings have surpassed the Zacks Consensus Estimate in only two of the preceding four quarters, while missing in the other two. However, the Zacks Consensus Estimate for the company’s fiscal third-quarter earnings has been revised upward by a penny in the past 60 days.
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