Note: EPS may not be comparable

Nordson Corp. (NASDAQ: NDSN) reported Q1 EPS of $1.35, $0.01 better than the analyst estimate of $1.34. Revenue for the quarter came in at $550 million versus the consensus estimate of $538.78 million.

• Sales increased 35 percent over prior year’s first quarter to $550 million
• Operating profit increased 55 percent over prior year’s first quarter to $118 million and is inclusive of $6 million of incremental intangible asset amortization expense over prior year related to acquisitions
• First quarter EBITDA increased 49 percent over prior year’s first quarter to $141 million
• GAAP diluted EPS increased 107 percent over prior year’s first quarter to $1.78; adjusted diluted EPS of $1.35 increased 57 percent over prior year’s first quarter
• Second quarter 2018 guidance: sales expected to increase 9 to 13 percent over prior year; GAAP diluted EPS in the range of $1.33 to $1.47; EBITDA in the range of $143 to $154 million

Outlook

For the second quarter of fiscal 2018, sales are expected to increase 9 percent to 13 percent compared to the second quarter a year ago. This outlook includes a range for organic volume to be down 3 percent to up 1 percent, 7 percent growth from the first year effect of acquisitions, and a positive currency effect of 5 percent based on the current exchange rate environment as compared to the prior year. At the midpoint of this outlook, operating margin is expected to be approximately 22 percent, or 23 percent excluding $6 million of incremental intangible amortization expense over the prior year. GAAP diluted earnings per share are expected to be in the range of $1.33 to $1.47, inclusive of $0.08 per diluted share of incremental intangible asset amortization expense over the prior year and an estimated effective tax rate of 25 percent. At the midpoint of the guidance, EBITDA and EBITDA margin are expected to be $149 million and 27 percent, respectively.

“Current backlog and project timing indicates more modest sales growth at the midpoint of our second quarter guidance, where prior year total company organic sales growth was 9 percent,” said Hilton. “We continue to focus our efforts on technology leadership, product-tiering, new applications, and market penetration to drive growth over the long term.”

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