Nordson Profit Rises, Tops Estimate; Outlook Weak - Update

(RTTNews) - Precision dispensing equipment maker Nordson Corp (NDSN), Thursday reported a better-than-expected increase in fourth-quarter profit, aided by a 14 percent climb in revenue and improved operating margins.

Looking ahead, the company detailed a weak outlook for the first quarter.

Nordson, based in Westlake, Ohio, posted quarterly net earnings of $72 million or $1.13 per share, compared with $59.8 million or $0.92 per share last year.

Excluding items, adjusted earnings for the quarter were $1.15 per share compared with $0.93 per share a year ago.

On average, 13 analysts polled by Thomson Reuters estimated earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the fourth quarter climbed to $468.6 million from $410.8 million in the prior year, topping analysts' expectations of $459.3 million.

Growth was driven by a 13 percent increase in organic volume, a 3 percent rise related to the first year effect of acquisitions, partly offset by a 2 percent decrease related to the unfavorable effects of currency translation.

Among segments, sales at adhesive dispensing systems rose 6.3 percent from last year, advanced technology systems gained 27.3 percent and industrial coating systems rose 14 percent.

Operating margin for the quarter was 23 percent, two percentage points higher than the prior year.

For the first quarter, the company expects net earnings of $0.60 to $0.70 per share, inclusive of a $0.01 per share short term purchase accounting charge; and revenue growth of 5 to 9 percent.

Analysts currently expect earnings of $0.73 per share on revenue growth of 8.4 percent for the quarter.

NDSN closed Thursday at $76.45, up $1.19 or 1.58%, on a volume of 289k shares on the Nasdaq.