Valuable Insights on Veralto Corporation Ahead of Q4 Earnings
Company Background and Earnings Forecast
With a market capitalization nearing $24.8 billion, Veralto Corporation (VLTO) specializes in water analytics, water treatment, marking and coding, and packaging and color services. Headquartered in Waltham, Massachusetts, Veralto operates in two primary segments: Water Quality (WQ) and Product Quality & Innovation (PQI). The company is set to announce its fiscal Q4 earnings results on Tuesday, February 4.
Analysts Predict Modest Earnings Growth
Before the earnings announcement, analysts forecast that Veralto will report a profit of $0.88 per share, reflecting a slight increase of 1.2% from $0.87 per share during the same quarter last year. Veralto has a strong history of outperforming Wall Street expectations, having exceeded bottom-line estimates in the last four quarters. In its previous quarter, the company posted adjusted earnings of $0.89 per share, surpassing consensus estimates by 3.5%.
Looking Ahead to Fiscal 2024
For fiscal 2024, analysts anticipate Veralto will achieve an earnings per share (EPS) of $3.48, representing a 9.1% increase from $3.19 reported in fiscal 2023.
Stock Performance and Market Insights
Over the past year, VLTO shares have surged by 31%, significantly outpacing the S&P 500 Index’s increase of 21.8% and the Industrial Select Sector SPDR Fund’s (XLI) rise of 16.9% during the same period.
Q3 Performance and Analyst Sentiment
Upon releasing its Q3 earnings on October 23, Veralto shares fell 4.6%, even after reporting revenues of $1.3 billion that met expectations, as well as an adjusted EPS of $0.89, which exceeded forecasts by 3.5%. Despite a year-over-year revenue growth of 4.7% and an 18.7% increase in net income, concerns over stagnant demand in China and subpar water quality margins overshadowed these achievements.
Analysts on Wall Street view VLTO’s stock with moderate optimism, holding an overall “Moderate Buy” rating. From 14 analysts tracking the stock, seven recommend a “Strong Buy” and the other seven suggest a “Hold.” This analysis indicates increased bullish sentiment from three months ago when only six analysts recommended a “Strong Buy.”
The average price target for Veralto stands at $115.13, suggesting a potential upside of 15.2% from its current share price.
On the date of publication,
Neharika Jain
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
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
