) touched a new 52-week high of $82.24 during its trading session
on May 23. The new 52-week high improved upon the last one of
$77.41 hit on May 14.
Nordson closed the session on May 23 at $81.86, reflecting a solid
year-to-date return of 13.1%. The trading volume for the session
was 0.82 million. Positive revisions in earnings estimates for
fiscal 2014 as well as an expected 13.0% earnings growth rate for
the next five years indicate further upward potential for this
Nordson reported an impressive result for fiscal second-quarter
2014 (ended Apr 30, 2014). Adjusted earnings came in at 97 cents
per share, up 15.5% year over year and also surpassed the Zacks
Consensus Estimate of 90 cents by 7.8%.
Revenues generated rose 9.3% to $417.5 million driven by organic
volume growth of 4.0%, acquisitions contribution of 5.0% and 1.0%
gain from currency translation. Backlog was $247.0 million, up 25%
from the year-ago quarter, while orders for the 12-week period
ended May 18, 2014 increased 9% year over year, on a constant
currency basis. Operating profits grew 12.9% year over year, while
operating margin gained 70 basis points (bps) and stood at 22.2%.
For fiscal third-quarter 2014, Nordson anticipates total revenues
to grow in the 9−13% range; comprising 3−7% organic revenues
growth, 5% contribution from acquisitions and 1% gain from foreign
currency translation. Operating margin is expected to be roughly
24%. Non-adjusted earnings are expected to lie in the range of
$1.06−$1.16 per share.
Stellar quarter-performance and a robust outlook have made us
optimistic about Nordson's performance in the coming quarters. The
company has an
of +1.80% for fiscal third-quarter 2014, +2.45% for fiscal 2014 and
+2.38% for fiscal 2015.
Estimate Revisions Show Potency
Over the last seven days, the Zacks Consensus Estimate for Nordson
has inched up 0.5% to $3.68 for fiscal 2014 and by 0.7% to $4.21
for fiscal 2015. The Zacks Consensus Estimate depicts
year-over-year growth rate of 8.9% for fiscal 2014 and 14.3% for
Nordson Corporation has a market capitalization of $5.2 billion and
carries a Zacks Rank #2 (Buy). Some better-ranked stocks in the
Illinois Tool Works Inc.
Blount International Inc.
). While Gorman-Rupp sports a Zacks Rank #1 (Strong Buy), both
Illinois Tool Works and Blount International have a Zacks Rank
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