Nordson Shares Rise On Strong Outlook

NEW YORK (AP) — Shares of Nordson Corp., which makes equipment for applying adhesives and coatings to packaging, autos and appliances, rose Friday after its third-quarter profit beat expectations and it issued a better-than-expected forecast.

But KeyBanc analyst Matt J. Summerville said shares are "appropriately valued" and reiterated his "Hold" rating.

Nordson shares continued their advance Friday in premarket trading, to $54.62, up 9.6 percent, or $4.79. It closed Thursday at $49.83.

The Westlake, Ohio-based company said Thursday its profit for the three months ended July 31 fell 26 percent but still topped expectations.

It also said it expects net income between 75 cents and 87 cents in the fourth quarter, including a charge of 4 cents per share associated with restructuring activities. Nordson expects sales of $224 million to $235 million.

On average, analysts expected a profit of 57 cents per share on sales of $224.6 million.

Summerville said fourth-quarter order rates should rise over third-quarter order rates but that the share price, now trading within its historical range, already reflects the expected sequential improvement.

He also raised his fiscal full-year forecast to $2.40 per share from $2 per share and his 2010 forecast to $2.60 per share from $2.30 per share.

Analysts expect earnings this fiscal year of $1.95 per share and $2.21 per share next year.