Veralto Corporation Prepares for Q1 Earnings Release with Positive Outlook
Waltham, Massachusetts-based Veralto Corporation (VLTO) specializes in water analytics, water treatment, marking and coding, as well as packaging and color services across the globe. Currently, Veralto holds a market capitalization of $22 billion and operates through its two main divisions: Water Quality (WQ) and Product Quality & Innovation (PQI).
Upcoming Earnings Announcement and Analyst Expectations
Veralto is on track to announce its first-quarter financial results on Tuesday, April 22. Analysts predict the company will report a non-GAAP profit of $0.87 per share, which marks a modest increase of 3.6% from the previous year’s $0.84 per share. In encouraging news, Veralto has a strong record of exceeding earnings expectations, having done so in each of the last four quarters.
Projected Growth and Future Earnings
For the full fiscal year 2025, analysts forecast an EPS of $3.68 for VLTO, representing an increase of nearly 4% from the $3.54 reported in fiscal year 2024. Looking ahead to fiscal year 2026, the company’s earnings are projected to rise by 8.7% year-over-year, reaching $4.00 per share.
Stock Performance Comparison
Over the past 52 weeks, Veralto stock has narrowly increased by 2 basis points, markedly outperforming the Industrial Select Sector SPDR Fund (XLI), which saw a 6.6% decline, and the S&P 500 Index ($SPX), which decreased by 2.7% during the same period.
Recent Earnings Report and Market Reaction
Despite reporting figures that exceeded expectations, Veralto’s stock fell by 5.1% following the release of its Q4 results on February 4. The company’s revenue increased by 4.4% year-over-year to $1.35 billion, surpassing market predictions by 20 basis points. Additionally, its adjusted EPS rose by 9.2% year-over-year to $0.95, exceeding analyst forecasts by around 8%. Looking forward, the company anticipates its Q1 FY25 adjusted earnings to fall between $0.84 and $0.88 per share, compared to $0.84 in Q1 2024, a figure that did not inspire confidence among investors. Nonetheless, Veralto expects its FY25 adjusted operating margins to expand by 25 to 50 basis points over FY24, with free cash flow conversion projected between 90% and 100% of GAAP net earnings.
Analyst Ratings and Price Target
The consensus on VLTO stock is moderately bullish, earning an overall “Moderate Buy” rating. Among the 14 analysts covering Veralto, seven recommend a “Strong Buy,” while the other seven suggest a “Hold” rating. The average price target of $112.31 indicates an upside potential of 28.9% from the current share price.
On the date of publication, Aditya Sarawgi 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.
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