Nordson Corporation (NASDAQ:NDSN) Just Reported Second-Quarter Earnings: Have Analysts Changed Their Mind On The Stock?

It's been a sad week for Nordson Corporation (NASDAQ:NDSN), who've watched their investment drop 10% to US$243 in the week since the company reported its second-quarter result. Revenues came in 2.2% below expectations, at US$651m. Statutory earnings per share were relatively better off, with a per-share profit of US$2.05 being roughly in line with analyst estimates. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nordson after the latest results.

See our latest analysis for Nordson

Taking into account the latest results, Nordson's ten analysts currently expect revenues in 2024 to be US$2.65b, approximately in line with the last 12 months. Statutory earnings per share are predicted to accumulate 3.0% to US$8.70. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$2.77b and earnings per share (EPS) of US$9.14 in 2024. It's pretty clear that pessimism has reared its head after the latest results, leading to a weaker revenue outlook and a small dip in earnings per share estimates.

The analysts made no major changes to their price target of US$276, suggesting the downgrades are not expected to have a long-term impact on Nordson's valuation. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Nordson analyst has a price target of US$315 per share, while the most pessimistic values it at US$233. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that Nordson's revenue growth is expected to slow, with the forecast 0.01% annualised growth rate until the end of 2024 being well below the historical 5.1% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 3.7% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Nordson.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. On the negative side, they also downgraded their revenue estimates, and forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Nordson going out to 2026, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for Nordson that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.