Vertical Research has commenced coverage on Nordson (NDSN, Financial), assigning a Hold rating to the stock. The research firm has set a price target of $245, indicating a neutral stance on the stock's potential performance in the market. Nordson, known for its manufacturing technologies, awaits strategic moves to potentially influence its stock trajectory in the coming months.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 9 analysts, the average target price for Nordson Corp (NDSN, Financial) is $248.92 with a high estimate of $285.00 and a low estimate of $211.00. The average target implies an upside of 13.98% from the current price of $218.39. More detailed estimate data can be found on the Nordson Corp (NDSN) Forecast page.
Based on the consensus recommendation from 10 brokerage firms, Nordson Corp's (NDSN, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Nordson Corp (NDSN, Financial) in one year is $263.31, suggesting a upside of 20.57% from the current price of $218.39. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Nordson Corp (NDSN) Summary page.
NDSN Key Business Developments
Release Date: May 29, 2025
- Revenue: $683 million, up 5% from the prior year.
- Gross Profit: $374 million, representing 55% of sales.
- EBITDA Margin: 32% of sales, with EBITDA at $217 million.
- Net Income: $112 million or $1.97 per share on a GAAP basis.
- Adjusted Earnings Per Share: $2.42, a 3% increase from the prior year.
- Debt Leverage Ratio: 2.4 times, within the targeted range.
- Free Cash Flow: $103 million, with a 92% conversion rate on net income.
- Share Repurchases: $85 million during the quarter.
- Dividends Paid: $44 million.
- Industrial Precision Solutions Sales: $319 million, decreased 8% year-over-year.
- Medical and Fluid Solutions Sales: $203 million, increased 20% year-over-year.
- Advanced Technology Solutions Sales: $161 million, increased 18% year-over-year.
- Third Quarter Sales Guidance: $710 million to $750 million.
- Third Quarter Adjusted Earnings Guidance: $2.55 to $2.75 per diluted share.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Nordson Corp (NDSN, Financial) reported a 5% increase in second-quarter sales, reaching $683 million, driven by an 8% increase from the Atrion acquisition.
- The company achieved strong EBITDA margins of 32%, attributed to operational excellence and contributions from the Atrion acquisition.
- Nordson Corp (NDSN) experienced solid growth in advanced technology systems, nonwoven systems, and medical fluid components.
- The Atrion integration is progressing well, with results exceeding valuation model expectations.
- Nordson Corp (NDSN) maintained a strong balance sheet, with a leverage ratio of 2.4 times and significant share repurchases totaling $85 million during the quarter.
Negative Points
- Nordson Corp (NDSN) faced year-over-year weakness in select industrial system sales due to lower overall market demand.
- The company experienced a double-digit decline in medical interventional product lines, partly due to ongoing destocking trends.
- Net interest expense increased by $7 million compared to the prior year, driven by higher debt levels from the Atrion acquisition.
- The Industrial Precision Solutions segment saw an 8% decrease in sales, impacted by weaker system sales in industrial coatings and polymer processing.
- Nordson Corp (NDSN) is cautious about potential impacts on end market demand due to ongoing geopolitical and trade policy uncertainties.
