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Jul 31, 2022

Nordson Q3 2022 Earnings Report

Reported record sales performance, driven by strong demand and strategic growth initiatives, despite facing currency headwinds and inflationary pressures.

Key Takeaways

Nordson Corporation reported record third-quarter results with sales of $662 million, a 2% increase over the prior year. Earnings per share were $2.45, and adjusted earnings per share were $2.49, a 3% increase year-over-year. The company is confirming its full-year fiscal 2022 guidance with revenue growth of 8% to 9% and adjusted earnings per diluted share growth of 18% to 21%.

Sales were $662 million, a 2% increase over prior year’s record sales.

Constant currency sales increased 7% over prior year’s record sales.

Earnings per share were $2.45 compared to $2.42 in the prior year.

Adjusted earnings were $2.49 per share, a 3% increase over the prior year.

Total Revenue
$662M
Previous year: $647M
+2.4%
EPS
$2.49
Previous year: $2.42
+2.9%
EBITDA
$213M
Previous year: $215M
-0.9%
Gross Profit
$366M
Previous year: $365M
+0.1%
Cash and Equivalents
$129M
Previous year: $174M
-26.1%
Free Cash Flow
$111M
Previous year: $118M
-6.6%
Total Assets
$3.82B
Previous year: $3.67B
+4.2%

Nordson

Nordson

Nordson Revenue by Geographic Location

Forward Guidance

The Company continues to be encouraged as order entry remained strong throughout the third quarter with a favorable book-to-bill ratio. For the full year, despite significant currency headwinds, the Company is confirming its previously issued revenue growth guidance of 8% to 9% over fiscal 2021 and adjusted earnings guidance growth in the range of 18% to 21%.

Positive Outlook

  • Order entry remained strong throughout the third quarter.
  • Favorable book-to-bill ratio.
  • Backlog entering the fourth quarter of fiscal 2022 exceeds $1 billion.
  • Revenue growth guidance of 8% to 9% over fiscal 2021 is confirmed.
  • Adjusted earnings guidance growth in the range of 18% to 21% is confirmed.

Challenges Ahead

  • Significant currency headwinds.
  • Extended shipment request dates in conjunction with large orders from its customers in electronics, industrial and medical end markets.
  • Inflation
  • Labor shortages
  • Increasing currency pressures

Revenue & Expenses

Visualization of income flow from segment revenue to net income