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Nordson
🇺🇸 NASDAQ:NDSN
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Jul 31, 2023

Nordson Q3 2023 Earnings Report

Nordson's Q3 2023 performance saw decreased sales but strong profitability amidst demand weakness in electronics and biopharma, with strategic focus on Ascend strategy and growth framework execution.

Key Takeaways

Nordson Corporation reported a 2% decrease in sales to $649 million for the third quarter of fiscal year 2023, with a net income of $128 million, or $2.22 per share. Despite the sales dip, the company maintained strong profitability with an EBITDA of $208 million, representing 32% of sales. The team remains focused on the execution of our Ascend strategy to achieve top tier growth with leading margins and returns.

Sales decreased by 2% to $649 million due to organic decline in electronics and biopharma markets.

EBITDA remained strong at $208 million, representing 32% of sales.

Earnings per share were $2.22, while adjusted earnings per share were $2.35.

The company is narrowing its full-year revenue growth guidance to 0% to 2% and adjusted earnings per share to $8.90 to $9.05.

Total Revenue
$649M
Previous year: $662M
-2.0%
EPS
$2.35
Previous year: $2.49
-5.6%
EBITDA
$208M
Previous year: $213M
-2.3%
Gross Profit
$360M
Previous year: $366M
-1.4%
Cash and Equivalents
$143M
Previous year: $129M
+11.2%
Free Cash Flow
$181M
Previous year: $111M
+63.9%
Total Assets
$4.2B
Previous year: $3.82B
+9.8%

Nordson

Nordson

Nordson Revenue by Geographic Location

Forward Guidance

The Company is narrowing its previously issued full-year revenue growth guidance to 0% to 2% over record fiscal 2022 and adjusted earnings guidance to the range of $8.90 to $9.05.

Positive Outlook

  • Backlog remains strong at $890 million, heavily weighted toward systems and medical interventional solutions.
  • Order entry has been steady throughout the quarter.
  • Fourth quarter sales are expected to be the strongest of the year, increasing low-mid single digits over the prior year.
  • The acquisition of the ARAG Group is forecasted to add approximately $20-$30 million of sales.
  • Focus on Ascend strategy to achieve top tier growth with leading margins and returns.

Challenges Ahead

  • Revenue growth guidance narrowed to 0% to 2%.
  • Demand weakness persists in electronics and biopharma end markets.
  • Organic sales decrease was driven by ongoing pressure in electronics, primarily semiconductor dispense applications, and biopharma end markets.
  • Adjusted earnings guidance narrowed to the range of $8.90 to $9.05.
  • Increased interest expense and lower operating profit.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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