NYSE$VLTO

Veralto Corp · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Veralto's third quarter performance in 2023 reflected solid operating execution amidst its separation from Danaher.

Veralto reported a 3% increase in sales to $1,255 million, with a 1% non-GAAP core sales growth. Net earnings were $205 million, or $0.83 per diluted common share. The company generated $232 million in non-GAAP free cash flow and expects to initiate a quarterly dividend of $0.09 per common share in Q4 2023.

  • Sales increased 3% year-over-year to $1,255 million, with non-GAAP core sales growth of 1%.
  • Operating profit margin was 21.8%, and non-GAAP adjusted operating profit margin was 22.4%.
  • Net earnings were $205 million, or $0.83 per diluted common share.
  • Non-GAAP adjusted diluted net earnings per common share were $0.75.

Headline financials

Total Revenue

$1.26B

Previous: $3.62B-65.4%
EPS (adj)

$0.75

Previous: $2.55-70.6%
Core Sales Growth

1.0%

No prior period
Capital Expenditures

-$32M

Previous: $26M-223.1%
Free Cash Flow

$173M

Previous: $507M-65.9%
Net Income

$205M

Previous: $218M-6.0%
Operating Income

$273M

Previous: $285M-4.2%
Gross Profit

$723M

Previous: $694M+4.2%
Cash & Equivalents

$426M

No prior period
Total Assets

$5.16B

No prior period
Stock-Based Comp

$13M

Previous: $30M-56.7%

Revenue & EPS history

Veralto · Revenue · Quarterly

$1.26B

Q3 2023-65.4%vs Q3 2022
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Revenue by segment

Veralto · $1.25B total across 2 segments · Q4 2022

  • Water Quality
    $756M
  • Product Quality & Innovation
    $492M

Forward guidance

For the fourth quarter 2023, the Company anticipates that non-GAAP core sales will be flat to down low-single digits year-over-year. The Company anticipates adjusted operating profit margin in the range of 23.5% to 24.5% and adjusted diluted earnings per share in the range of $0.79 to $0.84.

Headwinds

  • Non-GAAP core sales will be flat to down low-single digits year-over-year
  • Reduced demand for consumer-packaged goods impacting sales in its Product Quality and Innovation segment
  • Continued demand weakness in China

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 13 quarterly earnings reports

Historical avg

-0.8%

Avg return

Earnings day

+0.6%

Avg return

5 days after

+4.3%

Avg return

30 days after

44%

7 / 16 earnings

Positive

+7.1%

Q4 2023

Best reaction

-6.2%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.1%+3.1%-4.0%
Q4 2025-6.2%-4.9%-3.2%
Q3 2025-3.0%-3.5%-1.3%
Q2 2025+1.3%+2.3%+0.3%
Q1 2025+3.0%+2.8%+8.5%
Q4 2024-5.1%-1.2%-0.9%
Q3 2024-5.4%-7.0%-4.8%
Q2 2023+5.5%+7.0%+12.2%
Q2 2024+5.6%+7.8%+12.6%
Q1 2023+0.1%+1.2%+9.0%
Q1 2024+1.3%+3.2%+9.5%
Q4 2021-1.6%-0.1%+1.0%
Q4 2023+7.1%+8.4%+17.9%
Q4 2022-4.0%-2.5%+4.5%
Q3 2022-4.0%-2.5%+4.5%
Q3 2023-2.8%-5.1%+2.8%
Q2 2022
Q1 2022

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro