Nordson (NDSN) easily topped first-quarter estimates and management guided higher for the second quarter.
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%.
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%.