Nordson's Q4 Sales Miss Estimates: Acquisitions and Organic Growth Drivers

Nordson Corporation (NASDAQ: NDSN) reported its fiscal fourth quarter 2024 earnings, with sales coming in below analyst estimates. The company's sales totaled $744 million, a 4% increase over the prior year's $719 million. While the sales growth was driven by a 6% favorable impact from acquisitions and a 1% favorable currency translation, an organic sales decrease of 3% offset these positive factors.



The Zacks Consensus Estimate for sales was $733 million, which was $11 million lower than the actual sales figure. The deviation can be attributed to several factors, including strong demand in the Advanced Technology Solutions segment, the early integration of the Atrion Medical acquisition, and a favorable acquisition impact.

Nordson's sales performance in Q4 2024 was driven by the following key factors:

1. Advanced Technology Solutions segment: This segment experienced a 5% increase in sales, driven by an organic sales increase of 4% and a favorable currency impact of 1%. The segment's strong performance was stronger than expected, contributing to the sales beat.
2. Early integration of the Atrion Medical acquisition: Nordson's Medical and Fluid Solutions segment saw a 19% increase in sales, primarily driven by the acquisition of Atrion. The early integration of this acquisition contributed positively to the quarter's sales performance.
3. Favorable acquisition impact: The 6% favorable impact from acquisitions contributed significantly to Nordson's sales growth in Q4 2024. This factor helped Nordson exceed analyst estimates.

In conclusion, Nordson's sales performance in Q4 2024 was driven by strong demand in the Advanced Technology Solutions segment, the early integration of the Atrion Medical acquisition, and a favorable acquisition impact. Despite the organic sales decrease of 3%, the company's strategic acquisitions and segment-specific growth drivers contributed to its sales growth. Nordson's long-term growth prospects remain strong, supported by its acquisition strategy and focus on executing its Ascend strategy.