Veralto Corp · Q2 2024 earnings

Briefing

Veralto's second quarter performance reflected durability, driven by strong commercial and operational execution, delivering core sales growth and margin expansion.

Veralto reported a 2.8% increase in sales to $1,288 million, with a non-GAAP core sales growth of 3.8%. Net earnings were $203 million, or $0.81 per diluted share, while non-GAAP adjusted net earnings reached $213 million, or $0.85 per diluted share. The company raised its full-year adjusted earnings per share guidance, reflecting stronger operational execution and a more positive view of end markets.

• Sales increased 2.8% year-over-year to $1,288 million, with non-GAAP core sales growth of 3.8%.
• Operating profit margin was 23.2%, and the non-GAAP adjusted operating profit margin was 24.0%.
• Net earnings were $203 million, or $0.81 per diluted common share.
• Non-GAAP adjusted net earnings were $213 million, or $0.85 per diluted common share.

Headline financials

Revenue & EPS history

For the third quarter of 2024, Veralto anticipates non-GAAP core sales growth in the low-to-mid single-digits year-over-year with adjusted operating profit margin of approximately 23.5% and adjusted diluted earnings per share in the range of $0.82 to $0.86 per share. For the full year 2024, the Company maintained its core sales growth target of low single-digits and raised its target for adjusted operating profit margin expansion to ~75 basis points, up from 50-75 basis points year-over-year. The Company also raised its guidance for adjusted diluted earnings per share to a range of $3.37 to $3.45, up from its prior guidance of $3.25 to $3.34 per share. Its free cash flow conversion guidance was maintained at a range of 100% to 110%.