Nordson Corporation Reported its Q2 Fiscal 2024 Results

Nordson Corporation ( NDSN ) reported its second quarter fiscal 2024 results, with sales of $651 million and net income of $118 million. The company's adjusted earnings per diluted share were $2.05, while adjusted earnings per diluted share were $2.34. EBITDA was $203 million, or 31% of sales, compared to the prior year's EBITDA of $203 million, or 31% of sales.

The company's second-quarter sales included a favorable acquisition impact of 5%, partially offset by an organic sales decrease of 4%. The organic sales decrease was driven by ongoing pressure in electronics product lines, partially offset by growth in industrial coatings systems and fluid solutions product lines. Net income was $118 million, or $2.05 of earnings per diluted share, compared to the prior year's second quarter net income of $128 million, or $2.21 of earnings per diluted share. Adjusted net income was $135 million, a decrease from the prior year's adjusted net income of $141 million. Second quarter 2024 adjusted earnings per diluted share were $2.34, a 4% decrease from the prior year's adjusted earnings per diluted share of $2.45.

EBITDA in the second quarter was $203 million, or 31% of sales, compared to the prior year's EBITDA of $203 million, or 31% of sales. EBITDA was flat as improved gross margins were offset by higher selling and administrative expenses primarily related to the first-year effect of the ARAG acquisition.

Industrial Precision Solutions sales of $367 million increased 9% from the prior year, inclusive of an acquisition impact and an organic sales increase of 2%. Operating profit was $118 million, an increase of $6 million from the prior year. EBITDA in the quarter was $132 million, or 36% of sales, an 11% increase from the prior year second quarter EBITDA of $119 million, or 35% of sales. Medical and Fluid Solutions sales of $169 million increased 2% compared to the prior year second quarter, driven by growth in the fluid and interventional solutions product lines.

Nordson ( NDSN ) is entering the third quarter of fiscal 2024 with approximately $700 million in backlog, which continues to normalize and remain concentrated in systems businesses. Based on current visibility and order entry trends, the company is updating its full-year revenue guidance range to flat to 2% growth over record fiscal 2023 and adjusted earnings per diluted share to the range of $9.35 to $9.75 per diluted share.

Technical Outlook
Nordson ( NDSN ) is down 26.29% in Tuesday's Pre-Market trading. The Nordson share ( NDSN ) has demonstrated a predominantly upward trajectory since breaking out from a multi-month trading range in mid-December of the previous year. However, the stock is currently positioned to retreat to the midsection of the range on Tuesday due to the company's conservative guidance.

Should selling pressure escalate in the upcoming trading sessions, it is advisable for investors to monitor the $230 level. This area represents a potential point of interest for buyers, as it aligns with a horizontal line connecting a series of price actions over the past 20 months. Furthermore, it is near a golden cross pattern formed in late last year.