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Earnings Preview: Nordson

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Nordson (NASDAQ:NDSN) unveils its next round of earnings this Tuesday, December 15. Get prepared with Benzinga's ultimate preview for Nordson's Q4 earnings.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Nordson EPS will likely be near $1.53 while revenue will be around $556.68 million, according to analysts. Nordson EPS in the same period a year ago totaled $1.79. Sales were $585.45 million.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 14.53% decline in the company's earnings. Sales would be down 4.91% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2019
EPS Estimate 1.34 1.30 1.05 1.79
EPS Actual 1.42 1.58 0.89 1.79
Revenue Estimate 503.38 M 505.29 M 501.30 M 598.26 M
Revenue Actual 538.18 M 529.48 M 494.92 M 585.45 M

Stock Performance

For a full 12 months, the return has risen by 19.43%. Given that these returns are generally positive, long-term shareholders are probably relaxed going into this earnings release. Long-term shareholders are already enjoying 12-month gains prior to the announcement.

Do not be surprised to see the stock move on comments made during its conference call. Nordson is scheduled to hold the call at 08:30:00 ET and can be accessed here.

 

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Posted-In: Earnings