Shares of Nordson (NDSN) rose 1.3% in Monday’s extended trade after it delivered better-than-expected results for the third quarter of Fiscal Year 2021. The company designs and manufactures dispensing equipment for consumer and industrial adhesives, sealants and coatings.
Earnings soared 62% year-over-year to $2.42 per share, beating the consensus estimates of $2.06 per share.
Revenues stood at $646.9 million for the quarter, up 20.2% from the year-ago period. The figure surpassed the Street’s estimates of $602.7 million. The increase in revenues can be attributed to robust growth in electronics, medical and consumer non-durable end markets. (See Nordson stock charts on TipRanks)
The Executive Vice-President and Chief Financial Officer of Nordson, Joseph Kelley, said, “Rigorous application of the NBS Next growth framework in our divisions is helping us to focus and sustain profitable growth in our greatest opportunities.”
Buoyed by strong performance in the third quarter, Nordson has raised its guidance for Fiscal Year 2021. It expects sales growth to be in the range of 11% to 12%, as compared to the prior guidance of 8% to 10%. Also, the company anticipates earnings per share in the range of $7.75 to $7.95 against $7.20 to $7.50 guided previously.
On August 24, Robert W. Baird analyst Michael Halloran maintained a Buy rating on the stock with a price target of $276 (15.6% upside potential).
Halloran said, “Near- and long-term earnings power remains underappreciated (benefit of industrial, medical and electronic fluid dispense improvement), new management is building on NDSN’s already best-in-class execution, and we see healthy estimate acceleration continuing as end markets improve and execution remains crisp (aided by Ascend and NBSNext implementation).”
Overall, the stock has a Moderate Buy consensus rating based on 2 Buys. The average Nordson price target of $265.50 implies upside potential of 11.2%.
NDSN scores an 8 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.
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