Nordson cuts 2024 revenue forecast on slow electronics demand recovery

Nordson

20/05/2024 22:54

May 20 (Reuters) - Dispensing equipment maker Nordson
Corp  NDSN.O  cut its full-year revenue forecast on Monday on
slow recovery of electronics and semiconductor markets, sending
shares down over 13% in aftermarket trading. 
    It now expects full-year 2024 revenue growth to be flat to
2%, compared with the prior year, down from its previous
expectation of growth between 4% and 7%. 
    "As we move into the second half of fiscal 2024, the
positive indicators in the electronics end markets have not yet
converted into orders needed to meet our previously issued
guidance," CEO Sundaram Nagarajan said. 
    Nordson said it expects 2024 adjusted profit between $9.35
and $9.75 per share, while analysts were expecting $10.23 per
share, according to LSEG data. 
    "We are also experiencing increased pressure from the
agriculture cycle in Europe, which is causing OEMs to slow
investments in spray implement purchases," Nagarajan said.
    Second-quarter sales at its Advanced Technology Solutions
unit decreased 22% from the year-ago quarter. 
    It forecast third-quarter sales to be between $645 million
and $670 million, with adjusted profit in the range of $2.25 to
$2.40 per share. Analysts were expecting third-quarter revenue
of $705.1 million and a profit of $2.72 per share. 
     The company reported second-quarter adjusted profit of
$2.34 per share, beating expectations of $2.31 per share, as per
LSEG data.   
    

 (Reporting by Kannaki Deka in Bengaluru; Editing by Alan
Barona)
 ((Kannaki.Deka@thomsonreuters.com;))