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Veralto Corporation (VLTO), headquartered in Waltham, Massachusetts, provides water analytics, water treatment, marking and coding, and packaging and color services. Valued at $27.2 billion by market cap, the company offers product quality control systems and water purification equipment. The global leader in essential water and product quality solutions is expected to announce its fiscal third-quarter earnings for 2024 on Wednesday, Oct. 23.
Ahead of the event, analysts expect VLTO to report a profit of $0.86 per share on a diluted basis, up 14.7% from $0.75 per share in the year-ago quarter. The company beat the consensus estimate in each of the last three quarters.
For the full year, analysts expect VLTO to report EPS of $3.45, up 8.2% from $3.19 in fiscal 2023. Its EPS is expected to rise 5.8% year over year to $3.65 in fiscal 2025.
VLTO stock has outperformed the S&P 500’s ($SPX) 19.7% gains on a YTD basis, with shares up 35.3% during this period. Similarly, it outshined the S&P 500 Industrial Sector SPDR’s (XLI) 18.7% gains over the same time frame.
VLTO’s strong performance can be attributed to durable businesses, solid execution, and positive volume and price increases. The deployment of the Veralto Enterprise System has also helped drive growth and expand margins. The company has benefited from recovery in consumer-packaged goods markets and strong bookings in its packaging and color solutions business. Moreover, investor optimism has surged due to essential technologies and the spinoff from Danaher, despite ongoing regulatory challenges.
On Jul. 25, VLTO shares closed up marginally after reporting its Q2 results. Its adjusted EPS of $0.85 surpassed Wall Street expectations of $0.81. The company’s revenue stood at $1.3 billion, up 2.8% year over year. For Q3, VLTO expects its adjusted EPS to be between $0.82 and $0.86. The company maintained its full-year core sales growth target of low single-digits, and raised its adjusted EPS guidance, expecting it to be between $3.37 and $3.45.
Analysts’ consensus opinion on VLTO stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 13 analysts covering the stock, six advise a “Strong Buy” rating, and seven give a “Hold.” VLTO’s average analyst price target is $111.69, indicating a marginal potential upside from the current levels.
On the date of publication, Neha Panjwani 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.
