) reported better-than-expected results for third-quarter fiscal
2014 (ended Jul 31, 2014). Adjusted earnings came in at $1.20 per
share, up 21.2% from 99 cents recorded in the year-ago quarter.
Moreover, the bottom line surpassed the Zacks Consensus Estimate of
$1.13 by 6.2%.
Nordson Corporation - Earnings Surprise |
Nordson Corporation's revenues improved 13.8% year over year to
$458.6 million. The year-over-year improvement includes an 8% gain
from volume growth, 5% contribution from acquisitions and 1%
positive impact from currency translation. Top line also surpassed
the Zacks Consensus Estimate of $448.0 million.
Backlog was $266 million, up 36% from the year-ago quarter. Orders,
for the 12-week period ended Aug 17, 2014, increased 4% year over
Nordson Corporation reports its top-line results under three
segments - Adhesive dispensing systems, Advanced technology systems
and Industrial coating systems. A brief discussion on the segmental
performance is provided below:
Revenues generated from the Adhesive dispensing systems segment,
representing roughly 49.5% of total revenue, were $226.8 million.
The result reflected an increase of 15.7% year over year. The
Advanced technology systems' revenue grew 16.2% year over year to
$174.6 million, accounting for 38.1% of total revenue. Revenue from
the Industrial coating systems segment inched up 0.8% to $57.2
million. It represented 12.5% of total revenue.
On a regional basis, revenues generated in the U.S. climbed 3.4%
year over year. Further, businesses in Europe and Asia Pacific
flourished; recording revenue growth of 21.9% and 13.8%
respectively. Revenues sourced from Japan escalated 29.5% while
that from the Americas increased 11.7%.
Nordson Corporation's cost of sales increased 13% year over year
and represented 43.8% of total revenue, down 30 basis points (bps)
from the prior-year quarter. Selling and administrative expenses,
as a percentage of total revenue, stood at 31.2% versus 32.7% in
the year-ago quarter. Operating profits rose 22.8% year over year,
while operating margin gained 190 bps, coming in at 25%.
Exiting third-quarter fiscal 2014, Nordson Corporation had cash and
marketable securities of $53.2 million, increasing 7% from $49.7
million recorded at the preceding quarter-end. Long-term debt
slipped 3.8% sequentially to $612.4 million.
In the reported quarter, Nordson Corporation generated cash of
$80.8 million from its operating activities, down 12.2% year over
year. Capital spent on addition of property, plant and equipment
were up 5.4% to $11.4 million.
During the quarter, Nordson Corporation repurchased shares worth
$36 million and paid dividends amounting to $11 million.
For fiscal fourth-quarter 2014, Nordson Corporation anticipates
total revenues to grow in the range of 10−14%; comprising 7−11%
organic revenue growth and 3% contribution from acquisitions.
Operating margin is expected to be roughly 24%.
Generally Accepted Accounting Principles (GAAP) earnings are
expected to come in a range of $1.07−$1.17 per share.
With a market capitalization of $5.1 billion, Nordson Corporation
currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks
in the industry include Blount International Inc. (
), DXP Enterprises, Inc. (
) and IDEX Corporation (
). While Blount International sports a Zacks Rank #1 (Strong Buy),
both DXP Enterprises and IDEX Corporation hold a Zacks Rank #2
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