NYSE$VNT

Vontier Corporation · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Vontier reported solid results in Q2 2023, exceeding EPS guidance due to baseline core sales growth and strong operational execution. The company is advancing its connected mobility strategy and has raised full-year guidance.

Vontier Corporation announced its Q2 2023 results, with sales of $764.4 million, a 1.5% decrease year-over-year. GAAP diluted EPS was $0.62, while adjusted diluted net EPS was $0.67, exceeding prior guidance. The company has raised its full-year 2023 adjusted diluted net EPS guidance to $2.79 to $2.87.

  • Sales declined 1.5% year-over-year to $764.4 million, with a core sales decrease of 1.6%.
  • GAAP diluted EPS was $0.62, and adjusted diluted net EPS was $0.67, surpassing the prior guidance of $0.61 to $0.66.
  • Operating profit was $120.6 million, down 11.6% year-over-year, while adjusted operating profit was $160.1 million, a 4.1% decrease.
  • The company repurchased approximately $32 million in shares and repaid $100 million in debt during the quarter.

Headline financials

Total Revenue

$764M

Previous: $776M-1.5%
EPS (adj)

$0.67

Previous: $0.72-6.9%
Core Sales Growth

-1.6%

No prior period
Capital Expenditures

-$26.1M

Previous: -$26.5M+1.5%
Free Cash Flow

$71.2M

Previous: $6.8M+947.1%
Net Income

$97.3M

Previous: $33.3M+192.2%
Operating Income

$121M

Previous: $137M-11.6%
Gross Profit

$348M

Previous: $348M+0.0%
Cash & Equivalents

$244M

Previous: $127M+91.5%
Total Assets

$4.21B

Previous: $4.22B-0.3%
Stock-Based Comp

$8.5M

Previous: $7M+21.4%

Revenue & EPS history

Vontier · Revenue · Quarterly

$764M

Q2 2023-1.5%vs Q2 2022
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Vontier · $158M total across 1 segment · Q2 2023

  • Repair Solutions
    $158M

Forward guidance

Vontier provided Q3 2023 and full-year 2023 outlook. For Q3 2023, adjusted diluted EPS is expected to be $0.65 to $0.69. The full-year 2023 adjusted diluted EPS guidance is increased to $2.79 to $2.87.

Tailwinds

  • Baseline core sales growth of mid-single digits-plus
  • Adjusted diluted EPS $0.65 to $0.69
  • Adjusted diluted EPS in the range of $2.79 to $2.87
  • Adjusted free cash flow conversion of ~90-100%

Headwinds

  • Total sales down mid-single digits
  • Core sales down mid-single digits
  • Adjusted operating profit margin down 370 to 420 basis points year-over-year
  • Baseline adjusted operating profit margin down 70 to 100 basis points year-over-year

Historical earnings impact

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

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2023

Historical avgQ2 2023

+0.5%

Avg return

Earnings day

-0.3%

Avg return

5 days after

+0.9%

Avg return

30 days after

62%

16 / 26 earnings

Positive

+12.8%

Q4 2023

Best reaction

-15.8%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+3.3%-16.4%-19.7%
Q4 2025+3.4%-0.2%-11.5%
Q3 2025-11.1%-12.0%-15.1%
Q1 2025+0.0%+1.7%+12.7%
Q4 2024+1.8%+6.7%-12.1%
Q3 2024+8.5%+11.5%+15.2%
Q2 2024-15.8%-16.4%-10.7%
Q1 2024-2.9%+1.4%-1.6%
Q4 2023+12.8%+12.8%+18.6%
Q3 2023+9.0%+9.0%+15.8%
Q2 2023-2.2%-0.3%+4.8%
Q1 2023+4.1%+3.8%+13.1%
Q4 2022+9.8%+1.2%+7.6%
Q3 2022-5.8%-3.1%+3.8%
Q2 2022-6.2%-10.1%-18.0%
Q1 2022+0.3%-3.8%-0.7%
Q4 2021-13.1%-11.5%-13.1%
Q3 2021-2.5%-2.0%-11.0%
Q2 2020+4.1%+6.7%+14.1%
Q2 2021+4.1%+6.7%+14.1%
Q1 2020+4.1%+1.1%+3.8%
Q1 2021+9.7%+7.6%+8.4%
Q4 2019-3.1%-2.5%-3.7%
Q4 2018-3.1%-2.5%-3.7%
Q4 2020+1.8%-1.7%-7.3%
Q3 2020+1.7%+5.5%+20.6%
Q3 2019
Q2 2019
Q1 2019

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