Why Dividend King Nordson's Stock Popped This Week

Motley Fool
05-31
  • The industrial conglomerate notched convincing top- and bottom-line beats in its latest quarter.
  • It posted growth in several key divisions during the period.

Dividend King Nordson (NDSN 1.55%) was looking impressively regal on the stock market over the past few days, thanks largely to quarterly results that satisfied investors. With that tailwind at its back, according to data compiled by S&P Global Market Intelligence, the diversified industrial conglomerate's shares finished the week almost 10% higher in price.

Widespread improvements in the second quarter

Nordson's second quarter of fiscal 2025 earnings release, published following market close on Wednesday, showed that the company's total sales for the period were $683 million, an improvement over the $651 million it booked in the same quarter of fiscal 2024. They also topped the analyst consensus estimate of slightly under $673 million.

Image source: Getty Images.

As for profitability, Nordson netted a non-GAAP (generally accepted accounting principles) adjusted income of $138 million, or $2.42 per share. That was a small increase over the $135 million it posted in the same period the previous year. Again, the figure beat the average pundit projection, in this case $2.36.

Management attributed the relatively higher numbers to a variety of factors, not least were robust sales in several key divisions, including electronic systems and precision agriculture. A 5% rise in order backlog also boosted results.

Third-quarter guidance issued

Nordson proffered guidance for its current (third) quarter, estimating that it will earn $710 million to $750 million across the period. On the bottom line, adjusted earnings should come in at $2.55 to $2.75 per share. On average, analysts tracking the stock are modeling a top line of barely over $724 million, and adjusted profitability of $2.63 per share.

With Nordson, it seems to be a case of "steady as she goes," as the key divisions of the company are performing well, major fundamentals continue to grow, and the company keeps throwing off cash to help fund its constantly rising dividend. It feels like a good and reliable investment to me.

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