Nordson Corp (NDSN) saw its stock price tumble by 5.43% to $236.01 in after-hours trading on Wednesday, a direct consequence of the company’s fiscal year 2025 revenue guidance falling below analysts’ projections. This disappointing forecast overshadowed the company’s record annual sales, leaving investors questioning the future trajectory of NDSN.
The fourth quarter of fiscal year 2024 revealed a mixed bag for Nordson. While net sales climbed 4% year-over-year to $744 million, compared to $719 million in the same period last year, net income dipped slightly from $128 million to $122 million. This decline, though modest, contributed to the overall negative sentiment surrounding the announcement.
For the full fiscal year, Nordson reported record sales of $2.7 billion, a 2% increase compared to the previous year’s record. However, net income for the year also showed a decrease, falling from $487 million to $467 million. This year-over-year decrease, coupled with the underwhelming revenue guidance for fiscal 2025, fueled the stock’s decline.
The key factor driving the market’s negative reaction was Nordson’s revenue projection for fiscal year 2025. The company anticipates revenue between $2.75 billion and $2.87 billion, significantly lower than the analyst consensus of $2.93 billion, according to LSEG data. This shortfall triggered significant selling pressure.
Adding to the bearish sentiment, technical analysis using simple moving averages paints a concerning picture. The stock price closed below its 8-day ($255.12), 20-day ($256.39), 50-day ($255.04), and 200-day ($251.99) simple moving averages, indicating a clear bearish divergence. While a potential recovery might be underway, the current momentum isn’t strong enough to push the price above these key technical levels.
Despite the negative short-term indicators, the relative strength index (RSI) of 39.44 suggests the stock is approaching oversold territory. This could signal a potential rebound in the near future, depending on market sentiment and any further news releases.
Benzinga’s technical analysis scorecard assigns Nordson a score of 66 out of 100, reflecting the mixed signals emanating from the company’s financial performance and technical indicators.
Analyst sentiment remains relatively positive. According to Benzinga, the consensus price target for NDSN is $275.29, based on the ratings of eight analysts. While estimates range from a low of $225 (Loop Capital) to a high of $315 (DA Davidson), the average price target of $284.67 suggests a potential upside of 20.62%.
Overall, Nordson Corp’s stock price faces headwinds in the short term due to the disappointing revenue guidance. However, the longer-term outlook remains dependent on the company’s ability to overcome these challenges and meet or exceed future expectations. Investors should closely monitor the company’s performance and analyst commentary in the coming months.
