) recently announced an increase in its quarterly dividend rate
and approval for a new share buyback program. These
announcements, made a week before the company is scheduled to
release its third quarter of fiscal 2013 earnings results on Aug
23, 2013, will surely raise investors' confidence in the stock.
The revised quarterly dividend rate has been fixed at 18 cents,
an increase of 20.0% or 3 cents over the previous rate of 15
cents. This increase marks Nordson's 50th annual increase in a
row. A similar announced was made in Aug 2012, when the company
announced a 20% increase in its quarterly dividend rate from 12.5
cents to 15 cents per share.
The new dividend will be paid on Sep 10, 2013 to shareholders of
record as on Aug 27, 2013.
Also, Nordson received approval for a $200 million share buyback
program that replaces its existing $100 million authorization. Of
the old program, roughly $41 million shares have already been
repurchased by the company.
Consistent dividend payments with occasional increases and share
buyback programs has been Nordson's favored mode of rewarding its
shareholders over time and points toward the company's healthy
balance sheet and strong cash position.
If we steal a look into the results of the quarter ended Apr 30,
2013, Nordson paid $10 million in dividends and repurchased
shares worth $22 million. Quarter ending, the company had cash
and marketable securities balance of $62.8 million.
Apart from the capital deployment actions of Nordson, a brief
discussion on the outlook for the third quarter of fiscal 2013 is
For the fiscal third quarter of 2013, management of Nordson
Corporation anticipates sales to range within $404-$419 million,
up 6%-10% year over year. Organic growth is predicted to fall
within the 0%-4% range while acquisitions are expected to have a
7% positive impact. Currency translation is likely to impact
results negatively by 1%. Earnings per share are expected to be
within the $1.00-$1.09 range.
The Zacks Consensus Estimate for Nordson currently stands at
$1.04 for the third quarter, reflecting a decline of 2.2% year
over year. Earnings Estimate for fiscal 2013 and 2014 are at
$3.62 and $4.11, up 0.6% and 13.3%, respectively.
Nordson Corporation currently has a $4.5 billion market
capitalization. The stock currently has a Zacks Rank #2 (Buy).
Other stocks to watch out for in the industry are
), each with a Zacks Rank #1 (Strong Buy) while
Barnes Group Inc.
) carries a Zacks Rank #2 (Buy).
BARNES GRP (B): Free Stock Analysis Report
GRAHAM CORP (GHM): Free Stock Analysis Report
GORMAN RUPP CO (GRC): Free Stock Analysis
NORDSON CORP (NDSN): Free Stock Analysis
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