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Jul 31, 2021

Nordson Q3 2021 Earnings Report

Nordson achieved record quarterly sales, operating profit, and earnings per share, driven by strong demand across all end markets and the successful execution of the Ascend strategy.

Key Takeaways

Nordson Corporation reported record third-quarter results with sales of $647 million, a 20% increase year-over-year. Operating profit increased by 57% to $188 million, and earnings per share rose by 70% to $2.42. The company raised its full-year revenue and earnings guidance, expecting continued strength in order entry and backlog.

Sales were $647 million, a 20% increase over the prior year.

Operating profit was $188 million, a 57% increase over the prior year adjusted operating profit.

Earnings were $2.42 per diluted share, a 70% increase over the prior year adjusted earnings per share.

Increased prior fiscal 2021 full-year revenue guidance range to 11% to 12% growth over prior year, and earnings guidance range by approximately 7% to $7.75 to $7.95 per diluted share.

Total Revenue
$647M
Previous year: $538M
+20.2%
EPS
$2.42
Previous year: $1.42
+70.4%
EBITDA
$215M
Previous year: $148M
+45.3%
Gross Profit
$365M
Previous year: $281M
+30.1%
Cash and Equivalents
$174M
Previous year: $222M
-21.4%
Free Cash Flow
$118M
Previous year: $81.5M
+45.3%
Total Assets
$3.67B
Previous year: $3.82B
-3.9%

Nordson

Nordson

Nordson Revenue by Geographic Location

Forward Guidance

The Company expects full year sales growth in fiscal 2021 to be approximately 11% to 12% over fiscal year 2020. Additionally, the Company is now forecasting full year 2021 earnings per diluted share in the range of $7.75 to $7.95.

Positive Outlook

  • Full year sales growth in fiscal 2021 expected to be approximately 11% to 12% over fiscal year 2020.
  • Forecasting full year 2021 earnings per diluted share in the range of $7.75 to $7.95.
  • Increased guidance midpoint represents a strong second half of 2021 with year-over-year sales growth of 14% and earnings growth of 47%.
  • Expecting to enter fiscal 2022 with a backlog approximately 70% greater than the prior year.
  • Continued strength in order entry and backlog.

Challenges Ahead

  • 3% headwind from the second quarter 2021 divestiture of the screws and barrels product line.
  • Customer order patterns have clearly changed in terms of both volume and extended shipment request dates during this dynamic environment.
  • External supply chain headwinds.
  • External labor headwinds.
  • Possible effects of events beyond our control, such as political unrest, acts of terror, natural disasters and pandemics, including the current coronavirus (COVID-19) pandemic

Revenue & Expenses

Visualization of income flow from segment revenue to net income