Nordson Corporation (NDSN) Climbs on Better Than Expected 2Q Results
Shares of Westlake, Ohio, based Nordson Corporation (NDSN) rose on Tuesday, against the backdrop of a strong day in stocks overall. Nordson's stock was up 15.00%, rising $11.43 per share, to close at $87.61, on a volume of 1,914,100 shares. The stock was up on the news that the company posted better-than-expected results for its fiscal 2016 second quarter, including significantly higher earnings per share as well as higher revenues.
After the market close on Monday, Nordson announced the results of its operations for its 2016 fiscal year second quarter ended April 30. The results exceeded analyst expectations. Revenue for the quarter came in at $430 million, representing a 9% increase over the $401 million reported for the same quarter one year earlier. Revenue also reflects an organic growth rate of 8%. Analysts had expected revenue to come in at $415.5 million. The company also reported that operating profit reached $102 million for the quarter, representing a 33% increase over the second quarter of 2015.
Meanwhile GAAP diluted earnings per share was reported at $1.23, which was a 54% increase compared to the second quarter 2015, when the company reported GAAP diluted earnings per share of $0.80. Nordson is now projecting third-quarter results to reflect an increase in revenue of between 1% and 5% over the same quarter in 2015, and GAAP diluted earnings per share to come in at between $1.25 and $1.37.
Results for the company's three business segments were mixed. Revenue for the Advanced Technology Systems segment increased 23% from the same period a year earlier, reflecting an organic growth rate of 20%. Revenue in the segment increased from three primary geographic areas including the Americas, Europe, and Asia Pacific. Revenue in the Adhesive Dispensing Systems segment also reported positive growth, besting the second quarter of 2015 by 9%.
However, revenue for the Industrial Coating Systems segment fell by 13% from the second quarter of 2015. The decline represents weakness in the markets in the US and Japan, which failed to be offset by higher growth in Europe, Asia-Pacific and the Americas.
“Nordson’s global team delivered record second quarter sales, operating profit and diluted earnings per share,” said Nordson President and Chief Executive Officer Michael F. Hilton. “We generated outstanding organic growth of 8 percent in the quarter through our ongoing technology, application, product-tiering and segmentation initiatives and by meeting robust customer demand in consumer non-durable, electronics and medical end markets...We achieved these results in the quarter while continuing to execute on our longer term growth and margin enhancement initiatives.”
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