Shares of Nordson Corporation (NDSN) plummeted 13.54% to a four-month low in afternoon trading on Tuesday, after the company reported disappointing fiscal first-quarter results. The maker of products and systems used for adhesives, coatings and sealants missed earnings and sales expectations, and cut its full-year outlook. This was enough to make it the biggest decliner on the S&P 500 (SPX), which fell 1.85%.
Nordson Corporation reported late Monday that net income for the quarter to January 31st fell to $104.3 million, or $1.81 a share, from $120.4 million, or $2.05 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.95 missed the FactSet consensus of $1.97. Sales edged up 0.2% to $610.5 million, but that was lower than the FactSet consensus of $623.9 million.
The company’s disappointing results were reflected in its guidance for the full year. Nordson Corporation cut its guidance ranges for revenue to flat to up 3%, down from growth of 1% to 7% previously. The company also lowered its guidance for earnings per share (EPS) to $8.75 to $9.50, from $8.75 to $10.10.
The company attributed its weak performance to a decrease in order entry in recent weeks, as well as customers pushing out delivery dates. Nordson Corporation’s stock was on track to suffer the biggest one-day drop since it plunged 18.3% on March 16th, 2020. Over the past three months, the stock has shed 8.1%, while the S&P 500 has gained 1.3%.
Nordson Corporation’s disappointing results come as the global economy is still struggling to recover from the pandemic. Many companies have yet to return to pre-pandemic levels of production, and the economic recovery is likely to be slow and gradual. This means that the company may continue to face challenges in the coming quarters, as customers may remain hesitant to place orders, and delivery dates may continue to be pushed back.
In addition, Nordson Corporation is facing competition from other companies in the same industry. This means that the company will need to continue to innovate and develop new products in order to remain competitive. The company will also need to focus on cost-cutting measures, in order to remain profitable in the long-term.
Overall, Nordson Corporation’s disappointing results and lowered guidance suggest that the company is likely to continue to face challenges in the near future. The company will need to focus on cost-cutting measures, as well as developing new products, in order to remain competitive. In addition, the company will need to monitor the global economic recovery in order to adjust its strategies accordingly.
