Nordson (NDSN) Q2 Earnings Report Preview: What To Look For

Manufacturing company Nordson (NASDAQGS:NDSN) will be reporting earnings tomorrow after the bell. Here’s what investors should know.

Nordson missed analysts’ revenue expectations by 2.2% last quarter, reporting revenues of $650.6 million, flat year on year. It was a slower quarter for the company, with a narrow beat of analysts’ earnings estimates.

Is Nordson a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Nordson’s revenue to grow 1.2% year on year to $656.6 million, a reversal from the 2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.34 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Nordson has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Nordson’s peers in the professional tools and equipment segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Hyster-Yale Materials Handling delivered year-on-year revenue growth of 2.5%, beating analysts’ expectations by 3.5%, and Stanley Black & Decker reported a revenue decline of 3.2%, in line with consensus estimates. Hyster-Yale Materials Handling traded down 15.9% following the results while Stanley Black & Decker was up 9.5%.

Read our full analysis of Hyster-Yale Materials Handling’s results here and Stanley Black & Decker’s results here.

Inflation fears have put pressure on growth stocks, and while some of the professional tools and equipment stocks have fared somewhat better, they have not been spared, with share prices down 3.7% on average over the last month. Nordson’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $271.2 (compared to the current share price of $238.71).

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