Zacks Investment Research downgraded
) to a Zacks Rank #5 (Strong sell) on Jun 28, 2013.
Why the Downgrade?
APPLD INDL TECH (AIT): Free Stock Analysis
KAWASAKI HEAVY (KWHIY): Get Free Report
NORDSON CORP (NDSN): Free Stock Analysis
SUN HYDRAULICS (SNHY): Free Stock Analysis
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Shares of Nordson Corporation have dipped roughly 3.7% since the
company reported its second quarter of fiscal 2013 (ended Apr 30)
results on May 23. The results were lackluster as earnings per
share of 84 cents were in line with the year-ago quarter and the
Zacks Consensus Estimate.
Revenue grew roughly 21% year over year while backlog exiting the
quarter stood at $200 million, up just 3% compared with the
year-ago period. Orders for the 12-week ended May 19, 2013 were
down 2% over the same period a year-ago.
Talking of expenses and margins, cost of sales in the quarter
rose 31.6% and represented 43.2% of total revenue; up from 39.8%
in the year-ago quarter while operating margin declined from
24.4% to 21.5% in the quarter.
For fiscal 2013, management of Nordson anticipates organic
revenue growth to range within 0%-4% while currency translation
is predicted to have a negative 1% impact on total revenue
In the last 60 days, the Zacks Consensus Estimate for Nordson has
gone down by 5.0% to $3.62 for 2013 and has declined 9.3% to
$4.09 for 2014. Also, we have an Earnings ESP (Read:
Zacks Earnings ESP: A Better Method
) of -0.6% for fiscal 2013.
Other Stocks to Consider
Nordson Corporation is a $4.5 billion company, operating in the
diversified machinery industry. Other stocks to watch out for in
the industry are
Kawasaki Heavy Industries Ltd.
Sun Hydraulics Corp.
), each with a Zacks Rank #1 (Strong Buy) while
Applied Industrial Technologies, Inc.
) has a Zacks Rank #2 (Buy).