Nordson Beats Q4 Expectations but Weak Q1 Guidance Sends Shares Down 8%

Nordson (NASDAQ:NDSN) delivered stronger-than-expected fourth-quarter results, but a disappointing outlook for the first quarter of fiscal 2025 led to a sharp 8% drop in its stock price intra-day today. Despite a positive full-year forecast, the weak Q1 guidance overshadowed the upbeat finish to fiscal 2024.

For the fourth quarter, Nordson reported adjusted earnings of $2.78 per share, exceeding analyst expectations of $2.59. Revenue rose 3.5% year-over-year to $744 million, surpassing the Street consensus estimate of $736.83 million. The growth was bolstered by a 6% contribution from acquisitions and a 1% favorable currency impact, offsetting a 3% decline in organic sales. EBITDA climbed 4% to $241 million, representing 32% of total sales.

However, the company’s Q1 guidance fell short of market expectations. Nordson projected earnings per share between $1.95 and $2.15, below the Street consensus estimate of $2.26. Revenue for the quarter was forecast between $615 million and $655 million, missing the $681.9 million analysts had anticipated.

For the full fiscal year 2025, Nordson provided a more optimistic outlook, expecting earnings per share between $9.70 and $10.50 and revenue ranging from $2.75 billion to $2.87 billion. While this exceeded analyst projections, the subdued Q1 forecast dampened investor sentiment.

Nordson’s CEO attributed the cautious Q1 outlook to seasonal slowdowns during the holidays and restrained customer spending amid evolving macroeconomic conditions. Despite these near-term challenges, the company expressed confidence in its long-term growth strategy and its ability to generate robust cash flow even in uncertain times.