Nordson (NDSN) easily topped first-quarter estimates and management guided higher for the second quarter.
Company Description
Nordson is one of the world’s leading producers of precision dispensing equipment that applies adhesives, sealants, and coatings to a broad range of consumer and industrial products. The company also manufactures technology-based systems for curing and surface treatment processes.
Fiscal First-Quarter Results
Sales were $221 million, an 18% increase over the year-ago quarter. Sales volume was up 12% with the remainder of the increase coming from favorable currency translation.
EPS from continuing operations were $0.70, an increase of 79.5% over 1Q09 and 10 cents higher than the Zacks Consensus Estimate.
Looking ahead to the second quarter of fiscal 2010, the company expects sales to increase 26% to 30% over 2Q09 and EPS from continuing operations of $0.82 to $0.90. Its EPS guidance represents annual growth of 86% to 104%.
EPS Estimates Climbing Higher
Analysts clearly liked Nordson’s first-quarter report and outlook for the second quarter.
In the last month, the Zacks Consensus Estimate for fiscal 2010 is up 56 cents, or 19.1%, while consensus estimates for fiscal 2011 are up 65 cents, or 18.7%.
What’s more, Nordson has beaten the Zacks Consensus Estimate in four of the last five quarters by an average of 15.1%.
Industry Leader
Nordson has a return on equity of 18.8%, well above the industry average of 10.2%. The company’s debt-to-equity ratio is just 0.4% versus the industry average of 25.1%. Meanwhile, Nordson’s dividend yield of 1.1% looks really good when compared to the industry average of 0%.
