On Thursday, Nordson (NASDAQ:NDSN) Corporation (NASDAQ:NDSN) stock maintained its Buy rating and a $295.00 price target from DA Davidson following the company's third-quarter fiscal 2024 financial report.
The company's adjusted operating profit and earnings per share (EPS) exceeded DA Davidson's expectations, with the EPS beating forecasts by $0.02.
This performance was attributed to strong results from the Advanced Technology Systems (ATS) and Industrial Precision Solutions (IPS) segments, which compensated for a weaker revenue contribution from the Medical Fluid Solutions (MFS) division.
Nordson also updated its full-year 2024 guidance, which now includes an estimated $30 million in contributions from its recent acquisition of Atrion Corporation.
The updated core EPS forecast for Nordson suggests a modest increase at the midpoint, which is expected to balance the anticipated dilution from the Atrion deal.
The company's balance sheet and free cash flow (FCF) profile were noted as solid, and its backlog was reported at approximately $650 million, which is considered healthy despite signs of normalization.
The company's financial results indicate operational strength, particularly in its ATS and IPS segments, which have outperformed the analyst's model. The updated fiscal year 2024 guidance reflects the company's strategic moves, including the Atrion acquisition, and its impact on Nordson's earnings outlook.
Nordson's solid balance sheet and free cash flow profile continue to be key highlights, providing the company with financial stability. The backlog of around $650 million, although normalizing, remains a strong indicator of the company's ongoing business potential.
DA Davidson's reiteration of the Buy rating and the $295.00 price target underscores their positive view on Nordson's stock, following the company's latest financial performance and forward-looking statements. The target price remains unchanged, reflecting the firm's confidence in the company's valuation and future prospects.
InvestingPro Insights
As Nordson Corporation (NASDAQ:NDSN) demonstrates operational strength and strategic growth, recent data from InvestingPro bolsters the positive outlook. The company's market capitalization stands at a robust $14.19 billion, and its gross profit margin impresses at 55.01% over the last twelve months as of Q2 2024, underscoring its efficient operations. Additionally, Nordson's commitment to shareholder returns is evident, with a notable dividend yield of 1.26% and a track record of raising its dividend for 31 consecutive years, a testament to its financial discipline and stability.
InvestingPro Tips also highlight the company's low price volatility and the fact that its liquid assets exceed short-term obligations, suggesting a strong liquidity position. These factors, coupled with a moderate level of debt, provide Nordson with a solid foundation to navigate market fluctuations and invest in growth opportunities. For investors seeking further insights, InvestingPro features additional tips that delve deeper into Nordson's financial health and market position.
With analysts predicting profitability for the current year and a history of profitability over the last twelve months, Nordson's financials align with DA Davidson's optimistic assessment. The InvestingPro product offers even more tips, with a total of 10 additional insights available for those interested in a comprehensive analysis of Nordson's financial outlook.
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