Nordson forecasts FY 2025 revenue below estimates on weak farm equipment demand

Nordson

11/12/2024 22:18

Dec 11 (Reuters) - Dispensing equipment maker Nordson
Corp  NDSN.O  forecast fiscal 2025 revenue below Wall Street
estimates on Wednesday, as a slow recovery in electronics and
agriculture markets hurt sales for the company's products.
    Shares of the company were down more than 4% in aftermarket
trade.
    Nordson, which makes spraying equipment for agricultural
use, is grappling with a downturn in the market as high
borrowing costs and lower crop prices have dented demand for
farm equipment.
    Consumers postponing purchase of big-ticket items amid high
inflation has also impacted sales in Nordson's advanced
technology solutions segment that makes packaging tools used in
semiconductor production.
    "Considering the evolving global macro-environment, we are
entering 2025 with a conservative viewpoint," CEO Sundaram
Nagarajan said.
    Nordson expects its full-year 2025 revenue to be between
$2.75 billion and $2.87 billion. Analysts on average expect
$2.93 billion, according to data compiled by LSEG.   
    The company expects adjusted profit for fiscal 2025 to be in
the range of $9.70 to $10.50 per share, compared with Wall
Street estimates of $10.41.     
    However, the company reported fourth-quarter adjusted
earnings of $2.78 per share, beating estimates of $2.59.
    The Westlake, Ohio-based manufacturer's quarterly revenue
rose 4% from a year earlier to $744 million, above estimates of
$736.4 million.
     

 (Reporting by Kannaki Deka and Abhinav Parmar in Bengaluru;
Editing by Krishna Chandra Eluri)
 ((Kannaki.Deka@thomsonreuters.com;))