In reporting fiscal fourth-quarter and full-year 2024 results, Nordson Corporation (NDSN, Financials) showed an increase in revenue but a drop in net profits; the disclosure caused a significant drop in its stock price along with less than projected revenue projection for fiscal year 2025.

• Warning! GuruFocus has detected 3 Warning Sign with NDSN.

After-hours trading saw Nordson's shares drop 5.4%; closing price was $236.01. Investor worries over the company's cautious 2025 income projection, which is expected to run between $2.75 billion and $2.87 billion, below the $2.93 billion consensus estimate generated by LSEG reflect in the drop.

Rising 4% year over year, fourth-quarter net sales increased from $719 million to $744 million. Still, compared to $128 million in the previous year, net income for the quarter fell to $122 million. Though net income for the year dropped to $467 million from $487 million, Nordson attained record revenues of $2.7 billion, a 2% rise from the year before.

Nordson ascribed the drop in income to more expenses and unequal demand in important areas. The business said it keeps making investments in high-growth sectors and simplifying processes to increase profitability.

The earnings report positions Nordson at a pivotal point as it strikes a compromise between operational effectiveness and expansion goals. Analysts will be intently monitoring its performance as the business negotiates a difficult macroeconomic backdrop.

This article first appeared on GuruFocus.