Nordson Gears Up to Report Q2 Earnings: What's in the Offing?

Nordson Corporation NDSN is scheduled to release second-quarter fiscal 2025 (ended April 30) results on May 28, after market close.

The company has an impressive earnings surprise history, with the average beat being 2.9%. In the last reported quarter, its earnings of $2.06 per share missed the Zacks Consensus Estimate of $2.08 by 1%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let’s see how things have shaped up for Nordson this earnings season.

Factors to Note Ahead of NDSN’s Q2 Results

The Industrial Precision Solutions segment’s results are expected to put up a weak show due to lower demand for polymer processing and industrial coatings product lines. The consensus mark for the segment’s revenues is pegged at $323 million, indicating a 12% decrease from the year-ago figure.

Decreased demand for medical interventional product lines due to continued destocking is likely to have weighed on the Medical and Fluid Solutions segment in the to-be-reported quarter. Softness in electronics processing and x-ray product lines is likely to have hurt the Advanced Technology Solutions segment’s sales.

The escalating cost of sales poses a threat to NDSN’s bottom line. High input costs are expected to have pushed up the cost of sales, which is likely to have reflected in its margins.

The company’s international presence exposes it to the risk of adverse currency fluctuations, which are likely to have hurt its performance.

However, the acquisition of Atrion Corporation, which expanded Nordson’s medical offerings in the infusion and cardiovascular therapies market, is expected to support its results. In August 2023, NDSN acquired ARAG Group and its subsidiaries, which boosted its core capabilities in precision dispensing technology and helped it expand into the rapidly growing precision agriculture end-market. This acquisition is expected to aid results. 

The Zacks Consensus Estimate for the company’s fiscal second-quarter revenues is pegged at $673.6 million, indicating an increase of 3.5% from the year-ago quarter’s figure. The consensus estimate for adjusted earnings is pegged at $2.36 per share, indicating a 0.9% decrease from the year-ago quarter’s number.

Earnings Whispers for NDSN

Our proven model does not conclusively predict an earnings beat for NDSN this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: NDSN has an Earnings ESP of 0.00%, as both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $2.36. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: NDSN presently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Performance of Other Companies

AZZ Inc. AZZ came out with quarterly earnings of $0.98 per share in the second quarter of fiscal 2025 (ended March 2025), beating the Zacks Consensus Estimate of $0.95. This compares with earnings of $0.93 per share in the prior year.

AZZ reported revenues of $351.88 million, missing the consensus estimate by 3.77%. This compares with the year-ago revenues of $366.5 million. 

Valmont Industries VMI reported revenues of $969.31 million in the first quarter of 2025, declining 0.9% on a year-over-year basis. Earnings per share were $4.32 for the same period compared with $4.32 a year ago.

The reported revenues compare with the Zacks Consensus Estimate of $975.6 million. The company delivered an earnings surprise of 1.89%, with the consensus estimate pegged at $4.24 per share.

Pentair plc PNR came out with quarterly earnings of $1.11 per share in the first quarter of 2025, beating the Zacks Consensus Estimate of $1.01. This compares with earnings of $0.94 per share in the previous year.

Pentair posted revenues of $1.01 billion for the quarter, surpassing the consensus estimate by 2.68%. This compares with year-ago revenues of $1.02 billion.

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This article originally published on Zacks Investment Research (zacks.com).

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