By Connor Hart

Shares of Nordson climbed after the company inked a deal to sell certain manufacturing businesses, a day after notching higher-than-expected profit and revenue in its fiscal second quarter.

The stock rose 5.5%, to $206.59, in afternoon trading Thursday. Shares are down 11% over the past year.

Quasar Medical said earlier in the day that it would acquire the Westlake, Ohio, manufacturing company's design and development contract manufacturing businesses in Galway, Ireland, and Tecate, Mexico.

Terms of the deal, expected to close in the third quarter, weren't disclosed.

The sale came after Nordson on Wednesday posted a profit of $112.4 million, or $1.97 a share, for its three months ended April 30. Adjusted earnings came in at $2.42 a share, ahead of the $2.36 a share that analysts surveyed by FactSet expected.

Revenue increased 5%, to $682.9 million, topping the $671.9 million that analysts modeled.

Sales across its industrial precision solutions unit fell 8%. However, this loss was offset by its medical and fluid solutions segment, where sales jumped 20%, and its advanced technology solutions arm, where sales increased 18%.

Chief Executive Sundaram Nagarajan said the recent quarter benefited from increasing momentum in order entry, driven by strength in the company's electronics-systems sales and steady growth in nonwovens systems, precision agriculture and medical fluid components.

For the current quarter, Nordson guided for adjusted per-share earnings of $2.55 to $2.75 on revenue of $710 million to $750 million, compared with analyst views for adjusted earnings of $2.58 a share on revenue of $711.3 million.

DA Davidson analysts said in a research note that the outlook seems "to balance gradually improving order entry trends through the quarter and a sequentially improved backlog position with ongoing macroeconomic crosscurrents."

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

May 29, 2025 14:50 ET (18:50 GMT)

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