Nordson Profit Tops Estimate As Sales Climb 14% - Update

(RTTNews) - Precision dispensing equipment maker Nordson Corp (NDSN), Thursday reported a better-than-expected increase in third-quarter profit, aided by double-digit sales growth and improved operating margin.

The company provided its earnings guidance for the fourth quarter in line with Wall Street estimates, and revenue expectations appear strong.

Nordson makes dispensing equipment that applies adhesives, sealants and coatings, to a range of consumer and industrial products during manufacturing operations.

Nordson, based in Westlake, Ohio, posted quarterly net income of $77.9 million or $1.21 per share, compared with $65.4 million or $1.01 per share last year.

Excluding items, adjusted earnings for the quarter were $1.20 per share, compared with $0.99 per share a year ago.

On average, 13 analysts polled by Thomson Reuters expected the company to earn $1.13 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the third quarter climbed 14 percent to $458.6 million from $403 million last year, topping analysts' expectations of $449.8 million.

Volumes at adhesive dispensing systems segment increased 14.7 percent from last year, advanced technology systems gained 15 percent, and industrial coating systems 0.3 percent.

Apart from organic volume growth, results were helped by acquisition and some favorable impact of currency translation.

Operating margin increased two percentage points from a year ago to 25 percent.

For the fourth quarter, Nordson project earnings of $1.07 to $1.17 per share, including a $0.02 purchase accounting charge related to the step-up in value of inventory acquired in the Avalon acquisition. Sales are expected to grow between 10 percent and 14 percent.

Analysts currently expect earnings of $1.13 per share on sales growth of 10.5 percent for the quarter.

Nordson stock closed Thursday at $79.80, up $0.07 or 0.09%, on a volume of 166k shares on the Nasdaq. In after hours, the stock gained $1.20 or 1.50%, trading at $81.00.