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Apr 30, 2020

Nordson Q2 2020 Earnings Report

Nordson's sales decreased by 4% due to organic volume decline and unfavorable currency translation, but adjusted EPS increased slightly.

Key Takeaways

Nordson Corporation reported sales of $529 million, a 4% decrease compared to the prior year. GAAP diluted EPS was $1.58, while adjusted diluted EPS was $1.58 compared to $1.54 in the prior year. The company is withdrawing its fiscal year 2020 guidance due to COVID-19 uncertainties.

Sales decreased by 4% compared to the prior year's second quarter.

GAAP diluted EPS was $1.58.

Adjusted diluted EPS was $1.58 compared to $1.54 in the prior year’s second quarter.

Backlog increased by 6% compared to the same period a year ago.

Total Revenue
$529M
Previous year: $551M
-3.9%
EPS
$1.58
Previous year: $1.54
+2.6%
EBITDA
$152M
Gross Profit
$290M
Previous year: $302M
-4.0%
Cash and Equivalents
$306M
Previous year: $149M
+105.3%
Free Cash Flow
$90M
Previous year: $92.6M
-2.8%
Total Assets
$3.74B
Previous year: $3.48B
+7.7%

Nordson

Nordson

Nordson Revenue by Geographic Location

Forward Guidance

Due to the uncertainties of the duration and impact of the COVID-19 pandemic, the company is suspending its previously announced annual guidance for fiscal 2020.

Positive Outlook

  • The company has a strong backlog heading into the second half of the year.
  • The company has a solid foundation.
  • The company is diversified.
  • The company has a strong balance sheet.
  • The company will stay focused on the health and safety of our employees and the success of our customers.

Challenges Ahead

  • The company has seen a softening in order trends over the last six weeks.
  • This is a dynamic environment, making it difficult to accurately forecast the impact this pandemic will have on our business for the remainder of the fiscal year.
  • Uncertainties of the duration and impact of the COVID-19 pandemic.
  • The company is suspending its previously announced annual guidance for fiscal 2020.
  • The company has seen a softening in order trends.

Revenue & Expenses

Visualization of income flow from segment revenue to net income