Nordson Corporation (NASDAQ:NDSN) shares rose more than 7% since the release of the company’s Q2 earnings last week. EPS came in at $2.43, beating the Street estimate of $2.29, mainly driven by strong margins in Advanced Technology (ATS). Revenue was $635 million, below the Street estimate of $644.91 million.

Despite concerns over the impact of China lockdowns, ATS organic sales grew 11%. ATS margins were 31% and the company views increasing profitability as sustainable given an improved cost structure and NBS Next initiatives gaining traction.

Analysts at Berenberg Bank continue to favor the company in this environment for its resilient characteristics and company-specific initiatives that continue to drive margin upside.