Nordson Q4 Results Miss Street View

Nordson Corp. (NDSN) on Wednesday reported a fourth-quarter profit and revenues that fell short of Wall Street estimates.

Net income for the fourth quarter rose to $110.5 million or $1.88 per share, up from $18.5 million or $0.31 per share last year. Analysts polled by Thomson Reuters expected earnings of $2.09 per share for the quarter.

Fourth-quarter sales increased 7% to $599.2 million from $558.5 million last year. Analysts had a consensus revenue estimate of $617.45 million for the quarter.

The increase in sales included 10% organic volume growth, offset by an unfavorable 4% divestiture impact and favorable currency translation of 1%. Growth was strong in all product lines, particularly electronics and industrial end markets.

Industrial Precision Solutions sales increased 2% to $314 million, while Advanced Technology Solutions sales rose 14% to $285 million.

"Our fourth quarter 2021 performance was very strong with double digit organic growth and incremental operating profit margins of 52%. Looking sequentially, gross margins were impacted by a spike in logistics costs and non-recurring cost increases associated with divisional alignment efforts around best growth opportunities. Pricing actions are being taken to mitigate these negative impacts on gross margin as we move into the first half of 2022," said Nordson Chief Financial Officer Joseph Kelley.

Looking forward, Nordson expect first quarter sales growth to be in the range of 14% to 16% and adjusted earnings of $1.80 to $1.95 per share. Analysts currently estimates earnings of $1.71 per share on revenues of $587.02 million.

For the full year 2022, the company expects sales growth of 6% to 10% with adjusted earnings growth of 8% to 18%. Analysts currently estimate earnings of $8.93 per share on revenue growth of 8.90%

NDSN closed Wednesday's trading at $269.12, up $4.56 or 1.72%, on the Nasdaq. The stock, however, slipped $6.12 or 2.27% in the after-hours trading.

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