Nordson (NASDAQ:NDSN) reported better-than-expected results for the fourth quarter of Fiscal Year 2022. The company witnessed strong volumes during the quarter, which helped to offset currency headwinds and the impacts of high inflation to some extent.
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The company manufactures dispensing equipment for consumer and industrial adhesives, sealants, and coatings.
Nordson posted revenues of $683.6 million, up 14% year-over-year, and surpassed the Street’s estimate of $651 million. The top line benefitted from 18% organic volume growth. Also, strong sales growth was witnessed in all the segments.
Meanwhile, the company posted earnings of $2.44 per share, higher than the Street’s estimate of $2.32 per share. The reported figure compares favorably with $1.88 in the prior year’s quarter.
For Fiscal 2022, Nordson reported revenue of $2.6 billion, up 10% year-over-year. Also, adjusted earnings increased 22% to $9.43 per share.
For Fiscal 2023, the company expects revenue to grow between 1% to 7%, while earnings are anticipated to be in the range of $8.75 to $10.10 per share.
Is NDSN Stock a Good Buy?
Wall Street analysts are optimistic about Nordson stock and have a Strong Buy consensus rating, which is based on three unanimous Buys. The average stock price target of $271.67 implies 15.2% upside potential.
Supporting the bull case is NDSN’s impressive dividend history. The company has been increasing payouts every year since 2010. Overall, NDSN sports a “Perfect 10” Smart Score, implying it has the potential to beat the broader market averages.
