Nordson forecasts second-quarter profit below estimates on weak electronics demand

Nordson

21/02/2024 22:07

Feb 21 (Reuters) - Dispensing equipment maker Nordson
Corp  NDSN.O  on Wednesday forecast second-quarter profit below
Wall Street estimates on slow recovery of electronics and
semiconductor markets amid high borrowing costs. 
    It now expects profit between $2.20 and $2.35 per share for
the second quarter, while analysts were expecting $2.45 per
share, according to LSEG data. 
    Shares of the company were down 0.7% in aftermarket trading.
    Nordson also narrowed its forecast for full-year 2024
revenue growth to between 4% and 7%, down from its previous
expectation of between 4% and 9%, compared to year ago. 
    The company has been grappling with slowdown in sales at its
Advanced Technology Solutions business that serves the
semiconductor market, which has come under pressure due to a
slowdown in chip orders.
    First-quarter sales at Advanced Technology Solutions
decreased 18% from the year-ago quarter. 
     The company reported first-quarter adjusted profit of $2.21
per share, beating expectations of $2.04 per share, as per LSEG
data.   
    The Westlake, Ohio-based manufacturer's quarterly revenue
increased 4% to $633.2 million, beating estimates of $630.4
million. 

 (Reporting by Kannaki Deka in Bengaluru; Editing by Shailesh
Kuber)
 ((Kannaki.Deka@thomsonreuters.com))