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Veralto Corporation (VLTO), headquartered in Waltham, Massachusetts, provides water analytics, water treatment, marking and coding, and packaging and color services worldwide. Valued at $23.97 billion by market cap, the company offers product quality control systems and water purification equipment. The essential water and product quality solutions provider is expected to announce its fiscal second-quarter earnings for 2024 after the market closes on Thursday, Jul. 25.
Ahead of the event, analysts expect VLTO to report a profit of $0.81 per share on a diluted basis, down 99.9% from the year-ago quarter. For fiscal 2024, analysts expect VLTO to report EPS of $3.37, up 5.6% from $3.19 in fiscal 2023.
VLTO stock has outperformed the S&P 500’s ($SPX) 17.1% gains on a YTD basis, with shares up 18% during this period. Similarly, it outshined the S&P 500 Industrial Sector SPDR’s (XLI) 8.3% gains over the same time frame.
VLTO’s overall performance can be attributed to its robust Q1 results and promising full-year outlook. On Apr. 23, VLTO reported its Q1 results, and the stock closed up more than 2% and has been on an uptrend since then. Its sales increased 1.7% year-over-year to $1.25 billion, with non-GAAP core sales growth of 1.8%. The company’s non-GAAP net earnings and EPS came in at $209 million and $0.84, representing an increase of 8.9% and 7.7% year over year, respectively. For Q2, VLTO expects non-GAAP core sales growth to be in the low-single digits with an adjusted operating margin of approximately 23% and adjusted EPS between $0.75 and $0.80.
For the full year 2024, VLTO expects its non-GAAP core sales to grow low-single digits year over year and forecasts its adjusted operating profit margin to expand 50 to 75 basis points year over year. The company updated its full-year adjusted EPS guidance from $3.20 and $3.30 to $3.25 and $3.34.
Analysts’ consensus opinion on VLTO stock is bullish, with a “Moderate Buy” rating overall. Out of 13 analysts covering the stock, seven advise a “Strong Buy” rating, and six have a “Hold.” The average analyst price target for VLTO is $98.73, indicating a marginal potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
