Unpacking Q3 Earnings: Nordson (NASDAQ:NDSN) In The Context Of Other Professional Tools and Equipment Stocks

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Nordson (NASDAQ:NDSN) and the best and worst performers in the professional tools and equipment industry.

Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings.

The 10 professional tools and equipment stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.

Thankfully, share prices of the companies have been resilient as they are up 8.4% on average since the latest earnings results.

Nordson (NASDAQ:NDSN)

Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings.

Nordson reported revenues of $751.8 million, flat year on year. This print fell short of analysts’ expectations by 1.3%. Overall, it was a mixed quarter for the company with a solid beat of analysts’ adjusted operating income estimates but a slight miss of analysts’ revenue estimates.

Nordson delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 2.2% since reporting and currently trades at $231.15.

Read our full report on Nordson here, it’s free for active Edge members.

Best Q3: Kennametal (NYSE:KMT)

Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors.

Kennametal reported revenues of $498 million, up 3.3% year on year, outperforming analysts’ expectations by 4.3%. The business had an incredible quarter with a solid beat of analysts’ organic revenue estimates and EPS guidance for next quarter exceeding analysts’ expectations.

Kennametal scored the highest full-year guidance raise among its peers. The market seems happy with the results as the stock is up 34.5% since reporting. It currently trades at $29.75.

Is now the time to buy Kennametal? Access our full analysis of the earnings results here, it’s free for active Edge members.

Slowest Q3: Stanley Black & Decker (NYSE:SWK)

With an iconic “STANLEY” logo which has remained virtually unchanged for over a century, Stanley Black & Decker (NYSE:SWK) is a manufacturer primarily catering to the tool and outdoor equipment industry.

Stanley Black & Decker reported revenues of $3.76 billion, flat year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a beat of analysts’ EPS estimates but full-year EPS guidance slightly missing analysts’ expectations.

Interestingly, the stock is up 14.5% since the results and currently trades at $76.00.

Read our full analysis of Stanley Black & Decker’s results here.

Fortive (NYSE:FTV)

Taking its name from the Latin root of "strong", Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries.

Fortive reported revenues of $1.03 billion, up 2.3% year on year. This result surpassed analysts’ expectations by 1.8%. It was a stunning quarter as it also recorded a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.

The stock is up 12.8% since reporting and currently trades at $55.46.

Read our full, actionable report on Fortive here, it’s free for active Edge members.

ESAB (NYSE:ESAB)

Having played a significant role in the construction of the iconic Sydney Opera House, ESAB (NYSE:ESAB) manufactures and sells welding and cutting equipment for numerous industries.

ESAB reported revenues of $727.8 million, up 8.1% year on year. This print topped analysts’ expectations by 4.6%. Overall, it was a very strong quarter as it also produced a solid beat of analysts’ revenue estimates and a solid beat of analysts’ EBITDA estimates.

ESAB delivered the biggest analyst estimates beat and fastest revenue growth among its peers. The stock is down 4.4% since reporting and currently trades at $115.70.

Read our full, actionable report on ESAB here, it’s free for active Edge members.

Market Update

The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.

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