Yahoo Finance Nordson (NDSN) to Report Q2 Earnings: What's in the Cards?
Nordson Corporation NDSN is slated to release second-quarter fiscal 2023 (ended Apr 30, 2023) results on May 22, after market close.
The Zacks Consensus Estimate for the company’s fiscal second-quarter earnings has been revised upward by a penny in the past 60 days. The company has an impressive earnings surprise history, having outperformed the Zacks Consensus Estimate in three of the preceding four quarters, the average beat being approximately 3%.
Let's see how things have shaped up for Nordson's fiscal second-quarter earnings.
Nordson Corporation Price and EPS Surprise
Nordson Corporation price-eps-surprise | Nordson Corporation Quote
Factors to Note
Nordson’s fiscal second-quarter performance is likely to have been hurt by high cost of sales. Supply-chain disruptions and labor challenges might have weighed on the company’s margin performance.
Given NDSN’s significant international operations, foreign currency headwinds might have affected its top line.
Softening of semiconductor orders is likely to have weighed on the Advanced Technology Solutions segment’s performance in the to-be-reported quarter. The Zacks Consensus Estimate for Advanced Technology Solutions segment revenues indicates a 52.7% drop from the year-ago reported number.
The Medical and Fluid Solutions segment also might have put up a weak show due to weakness in the medical fluid components product lines.
However, strengthening demand in automotive, industrial and consumer nondurable product lines is expected to have aided performance of the Industrial precision solution segment. Strength in packaging and product assembly end markets in the Americas and Europe is likely to translate into higher revenues for the unit. The consensus mark for the Industrial Precision Solution segment hints at a 1.3% increase from the year-ago reported number.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Nordson this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But this is not the case here, as you will see below.
Earnings ESP: Nordson has an Earnings ESP of -0.67% as the Most Accurate Estimate is pegged at $2.09, lower than the Zacks Consensus Estimate of $2.10. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Nordson currently carries a Zacks Rank #2.
Highlights of Q1 Earnings
Nordson reported first-quarter fiscal 2023 adjusted earnings of $1.95 per share, which missed the Zacks Consensus Estimate of $1.98. The bottom line decreased 5.8% year over year. Total revenues of $610.5 million inched up 0.2% from the year-ago quarter. It missed the Zacks Consensus Estimate of $623 million. Organic sales expanded 1%, driven by combined growth in Europe and the Americas. Acquisitions/divestitures had a positive impact of 3%, while foreign currency translation had a negative impact of 4%.
Stocks to Consider
Here are some companies that you may want to consider, as according to our model, these have the right combination of elements to beat on earnings this reporting cycle.
Deere & Company DE has an Earnings ESP of +6.75% and a Zacks Rank #3. DE is slated to release second-quarter fiscal 2023 financial numbers on May 19. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Deere’s fiscal second-quarter earnings has been revised upward by 2 cents in the past 60 days. The company pulled off a trailing four-quarter earnings surprise of 4.7%, on average.
Greif GEF has an Earnings ESP of +10.00% and a Zacks Rank #3. GEF is scheduled to release second-quarter fiscal 2023 earnings numbers on Jun 7.
The Zacks Consensus Estimate for Greif’s fiscal second-quarter earnings has been revised downward by 7% in the past 60 days. However, the company delivered a trailing four-quarter earnings surprise of 7.6%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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