NYSE$VNT

Vontier Corporation · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Vontier's Q2 2024 performance was impacted by delayed customer project timing and reduced discretionary spending, leading to a sales decline. However, the company is confident in its strategic positioning and long-term growth potential.

Vontier Corporation reported a 9% year-over-year decline in sales to $696.4 million, with core sales down 3%. GAAP diluted net EPS was $0.45, and adjusted diluted net EPS was $0.63. The company lowered its full-year 2024 outlook and initiated Q3 2024 guidance, while also announcing an intent to execute an Accelerated Share Repurchase Plan.

  • Sales decreased by 9% year-over-year to $696 million, with a 3% decline in core sales.
  • GAAP diluted net EPS stood at $0.45, while adjusted diluted net EPS reached $0.63.
  • Operating cash flow amounted to $46 million, and adjusted free cash flow was $26 million, representing a 27% adjusted free cash flow conversion.
  • The company lowered its full-year 2024 outlook and introduced Q3 2024 guidance.

Headline financials

Total Revenue

$696M

Previous: $764M-8.9%
EPS

$0.45

Previous: $0.67-32.8%
Adjusted Operating Profit

$142M

No prior period
Operating Profit Margin

16.4%

No prior period
Adjusted Operating Profit Margin

20.3%

No prior period
Adjusted Net Earnings

$97.6M

No prior period
Adjusted Free Cash Flow

$25.9M

No prior period
Adjusted Free Cash Flow Conversion

26.5%

No prior period
Capital Expenditures

-$44M

Previous: -$26.1M-68.6%
Free Cash Flow

$26.1M

Previous: $71.2M-63.3%
Net Income

$70.1M

Previous: $97.3M-28.0%
Operating Income

$114M

Previous: $121M-5.4%
Gross Profit

$336M

Previous: $348M-3.6%
Cash & Equivalents

$331M

Previous: $244M+35.8%
Total Assets

$4.24B

Previous: $4.21B+0.7%
R&D Expense

$45.1M

No prior period
Stock-Based Comp

$7.9M

Previous: $8.5M-7.1%

Revenue & EPS history

Vontier · Revenue · Quarterly

$696M

Q2 2024-8.9%vs Q2 2023
Beat estimate in 11 of 15 quarters(73%)
ActualEstimate

Revenue by segment

Vontier · $160M total across 1 segment · Q3 2023

  • Repair Solutions
    $160M

Forward guidance

Vontier provided the following guidance for Q3 2024: Total sales $715 to $740 million; Core sales (2%) to +2%; Adjusted operating profit margin down 80 to 110 basis points year-over-year; Adjusted diluted net earnings per share in the range of $0.67 to $0.71. For full year 2024: Total sales $2,900 to $3,000 million; Core sales (1%) to +3%; Adjusted operating profit margin flat to up 50 basis points year-over-year; Adjusted diluted net earnings per share in the range of $2.80 to $3.00; Adjusted free cash flow conversion of ~90%

Tailwinds

  • Total sales $715 to $740 million
  • Core sales (2%) to +2%
  • Adjusted operating profit margin down 80 to 110 basis points year-over-year
  • Adjusted diluted net earnings per share in the range of $0.67 to $0.71
  • Adjusted free cash flow conversion of ~90%

Headwinds

  • The company is lowering its 2024 outlook to reflect slower market growth in the second half
  • Adjusted operating profit margin down 80 to 110 basis points year-over-year
  • Core sales (2%) to +2%
  • Total sales $715 to $740 million
  • Total sales $2,900 to $3,000 million

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 2024

Historical avgQ2 2024

+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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