Nordson Corporation (NASDAQ:NDSN), a precision technology solutions company yesterday reported their second quarter fiscal year 2016 financial results. Nordson reported second quarter earnings of $1.23 per share, which beat analyst expectations of $0.92 per share. Nordson reported second quarter revenues increased 9.2% year over year to $437.6 million which beat analyst expectations of $415.53 million.
Nordson Corporation CEO’s Comments
Nordson’s global team delivered record second quarter sales, operating profit and diluted earnings per share,” said Nordson President and Chief Executive Officer Michael F. Hilton. “We generated outstanding organic growth of 8 percent in the quarter through our ongoing technology, application, product-tiering and segmentation initiatives and by meeting robust customer demand in consumer non-durable, electronics and medical end markets. We leveraged the strong top line growth and our continuous improvement efforts to drive reported operating margin to 23 percent in the quarter, an increase of 4 percentage points from the prior year, with incremental operating margin in the quarter of 69 percent and earnings growth of 54 percent over the prior year second quarter. We achieved these results in the quarter while continuing to execute on our longer term growth and margin enhancement initiatives. Business Wire
NDSN Technical Analysis
NDSN opened trading yesterday at $75.93, which was up from the previous days trading of $75.74. NDSN closed trading yesterday at $76.18 and spiked up after market to $80.26, equivalent to a 5% increase from the closing price. Taking a look at the daily chart we can see the last time NDSN traded above this price level was on April 27 when it traded at highs of $80.50. Taking a closer look at the daily chart we can see that NDSN has been on an overall upward trend dating back to January 20th when it traded at its 52 week low price of $51.89. NDSN has a float of 50.41 million shares and traded almost 1.5 times the normal daily trading volume on Monday. For trading purposes, I would like to see NDSN open trading on Friday above $79 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.50 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Nordson Corporation engineers, manufactures, and markets products and systems to dispense, apply, and control adhesives, coatings, polymers, sealants, biomaterials, and other fluids. Its Adhesive Dispensing Systems segment provides dispensing, coating, and laminating systems for applying adhesives, lotions, liquids, and fibers to disposable products and continuous roll goods; and assembling plastic, metal, and wood products in paper and paperboard converting applications, as well as manufacturing continuous roll goods.
This segment also offers automated adhesive dispensing systems for packaged goods industries; and components and systems used in the thermoplastic melt stream. The company’s Advanced Technology Systems segment offers automated dispensing systems for attachment, protection, and coating of fluids, as well as related gas plasma treatment systems for cleaning and conditioning surfaces prior to dispense; precision manual and semi-automated dispensers, plastic molded syringes, cartridges, tips, fluid connection components, tubing, and catheters to apply and control the flow of adhesives, sealants, lubricants, and biomaterials; and bond testing, and automated optical and X-ray inspection systems for use in the electronics, medical, and related industries.
Its Industrial Coating Systems segment provides automated and manual dispensing products and systems to apply multiple component adhesive and sealant materials; dispensing and curing systems to coat and cure containers; systems to apply liquid paints and coatings to consumer and industrial products; and systems to apply powder paints and coatings to metal, plastic, and wood products, as well as ultraviolet equipment for use in curing and drying operations for specialty coatings, semiconductor materials, and paints. The company markets its products through its direct sales force, distributors, and sales representatives worldwide. Nordson Corporation was founded in 1935 and is headquartered in Westlake, Ohio.
By Jonathan G