(NDSN) - Nordson Corp - Three of the four covering analysts boosted their estimates

Nordson Corporation (NDSN) was first highlighted as a Growth and Income pick on Mar 24, and it continues to exceed analysts’ earnings expectations. Furthermore, earnings estimates keep trending higher. As a result, the company is still a Zacks #1 Rank stock. The Board of Directors boosted its quarterly cash dividend to 17.5 cents per common share from 17 cents in early December. NDSN is currently yielding 1.4%. Full Analysis Nordson Corporation is the world's leading manufacturer of systems that apply adhesives, sealants and coatings during manufacturing operations. The company’s products are used around the world in the appliance, automotive, bookbinding, container, converting, electronics, food and beverage, furniture, life sciences, medical, metal finishing, nonwovens, packaging, semiconductor and other industries. When NDSN made its debut as a Growth and Income stock on Mar 24, the company had topped the consensus earnings estimate in the past two quarters by an average margin of 23.7%. Since then, NDSN has beaten the Street’s estimate on three additional occasions, two of which amounted to double-digit percentage surprises. Most importantly, the company is still a Zacks #1 Rank stock. On Dec 19, NDSN posted fourth-quarter fiscal 2006 profits of 87 cents per share, exceeding analysts’ expectations of 72 cents by an impressive 20.8%. Compared to earnings of 80 cents in the prior-year period, the result marked an 8.8% year-over-year improvement. Revenues climbed slightly to $241.5 million from $238.9 million for the fourth quarter of fiscal 2005. Fourth-quarter revenues represented a new record for the company. For the entire fiscal year, profits increased 15.7% to $90.6 million, compared to $78.3 million in the prior-year period. Revenues jumped 7.2% to $892.2 million, versus $832.2 million in fiscal 2005. Chairman and CEO Edward P. Campbell stated, “I am pleased by Nordson's strong performance in fiscal year 2006, with both our sales volume and earnings per share reaching record levels.” The consensus estimate for this year currently sits at $3.02 per share. When compared to the consensus of a week earlier, analysts upped their estimates by 6.3%. Three of the four covering analysts boosted their estimates. Profit forecasts for next year call for $3.45 per share—representing a 15.0% increase over the same period of time. One of the two covering analysts raised his forecast. Earnings per share are projected to grow 19% over the next 3-5 years. The industry is expected to grow at a 14% clip. On Dec 6, the Board of Directors boosted its quarterly cash dividend to 17.5 cents per common share from 17 cents. The increase represents the 44th consecutive year of annual dividend increases. The company has a current dividend yield of 1.4% and a five-year average dividend yield of 1.9%. The Board also approved the purchase of up to one million shares of the company's stock over a three-year period. NDSN’s return on equity easily tops that of the industry average—23% compared to 14%. Content Courtesy: Zacks Investment Research #1 Ranked Stocks Highlight Archive To truly take advantage of the Zacks Rank, you need to first understand how it works. That is why we created the free special report: Zacks Rank Guide: Harnessing the Power of Earnings Estimate Revisions. | Blog Home| VitalStocks Home