Nordson Profit Declines, Misses Estimates; Stock Down

(RTTNews) - Dispensing equipment maker Nordson Corp. (NDSN), Thursday reported a decline in third-quarter profit, hurt by lower margins that offset acquisition-led growth in sales. As well, results for the quarter came in well short of Wall Street estimates.

Nordson provided some weak earnings and sales outlook for the fourth quarter, citing tough business conditions, especially in emerging markets, and its backlog was a cause for concern.

Investors were not overly impressed with the results, sending Nordson shares down 8 percent in after-hours trade on the Nasdaq.

Nordson makes dispensing equipment for consumer and industrial adhesives, sealants and coatings, as also equipment used in the testing and inspection of electronic components.

The Westlake, Ohio-based company posted quarterly net income of $65.4 million or $1.01 per share, compared with $66.7 million or $1.03 per share last year.

Excluding items, adjusted earnings for the quarter were $0.99 per share, compared with $1.06 per share a year ago.

On average, 11 analysts polled by Thomson Reuters expected earnings of $1.05 per share for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter climbed 6 percent to $403 million from $380 million last year, but missed analysts' expectations of $413.32 million.

Sales volume in Adhesive Dispensing Systems segment grew 13 percent year-over-year, and was up 10 percent at Industrial Coating Systems segment. Volume at Advanced Technology Systems slid 2 percent.

Backlog at the end of the quarter was about $197 million, down 21 percent from a year ago.

For the fourth quarter, Nordson expect earnings in the range of $0.87 to $0.98 per share and sales of $391 million to $408 million. Analysts currently expect earnings of $1.15 per share and sales of $445.07 million.

Shares of Nordson closed Thursday at $71.37, up $1.69 or 2.43%, on a volume of 119 thousand shares. In after hours, the stock slid $5.52 or 7.73%.