Nordson Corp. (NASDAQ: NDSN) reported Q3 EPS of $1.78, $0.46 better than the analyst estimate of $1.32. Revenue for the quarter came in at $589 million versus the consensus estimate of $574.73 million.

• Sales increase 20 percent from prior year’s third quarter to $589 million, with all three segments contributing to 11 percent organic growth
• Operating profit increases 24 percent to $153 million and operating margin improves by 1 percentage point to 26 percent, both compared to the prior year’s third quarter and both inclusive of $6 million of intangible asset amortization expense for fiscal 2017 acquisitions
• GAAP diluted EPS increases 19 percent to $1.74 and adjusted diluted EPS increases 21 percent to $1.78, both compared to the prior year’s third quarter
• EBITDA increases 29 percent to $179 million, EBITDA margin improves 2 percentage points to 30 percent, and EBITDA per diluted share increases 27 percent to $3.08, all compared to the prior year’s third quarter
• Free cash flow before dividends increases 14 percent compared to the prior year’s third quarter to $55 million
• Pro-forma 12 week order rates decrease 2 percent over same period a year ago
• Fourth quarter 2017 guidance: sales expected to increase 4 to 8 percent over prior year; GAAP diluted EPS in the range of $1.18 to $1.32; EBITDA in the range of $133 to $144 million, or $2.27 to $2.46 per diluted share

GUIDANCE:

Nordson Corp. sees Q4 2017 EPS of $2.27-$2.46, versus the consensus of $1.49.

Outlook

For the fourth quarter of fiscal 2017, sales are expected to increase 4 percent to 8 percent compared to the fourth quarter a year ago. This growth includes organic volume down 3 percent to down 7 percent, 10 percent growth from the first year effect of acquisitions, and a positive currency effect of 1 percent based on the current exchange rate environment. At the midpoint of this outlook, operating margin is expected to be approximately 21 percent and GAAP diluted earnings per share are expected to be in the range of $1.18 to $1.32, inclusive of $6 million or $0.07 per diluted share of fiscal 2017 acquisition intangible asset amortization expense. EBITDA, EBITDA margin and EBITDA per diluted share are expected to be $138 million, 26 percent and $2.37 at the midpoint of the guidance, respectively.

“Our fourth quarter guidance reflects our backlog, current 12 week order rates, and very challenging comparisons to the same period a year ago where we generated 13 percent organic growth,” said Hilton. “At the low end of our guidance, Nordson is on pace to deliver record full year performance for most metrics, including revenue, earnings and EBITDA. At the midpoint of this guidance, full year organic growth is 6 percent, well above most global GDP forecasts and against a robust prior year comparison where we delivered 7 percent organic growth. Adjusted diluted earnings per share at this midpoint is $5.24, an increase of 12 percent compared to fiscal 2016, and inclusive of intangible asset amortization expense related to this year’s four acquisitions of approximately $15 million or $0.18 per share. We expect to continue generating strong levels of free cash, enabling us to maintain our balanced and flexible approach to capital deployment, with de-leveraging likely to remain the near term priority. Overall, we remain well positioned across the diverse end markets we serve, and our global team remains focused on creating shareholder value by offering customers innovative technology solutions and outstanding support.”

For earnings history and earnings-related data on Nordson Corp. (NDSN) click here.