Vontier Corporation · Q3 2023 earnings

Briefing

Vontier reported strong financial performance, exceeding guidance, driven by core revenue growth and free cash flow.

Vontier Corporation reported Q3 2023 sales of $765.4 million, a 3% year-over-year decline. GAAP diluted net EPS was $0.58, while adjusted diluted net EPS was $0.73, exceeding prior guidance. The company generated $128 million in adjusted free cash flow, representing a 113% adjusted free cash flow conversion. Vontier initiated Q4 2023 adjusted diluted net EPS guidance of $0.75 to $0.79 and narrowed full-year 2023 adjusted diluted net EPS guidance to $2.83 to $2.87.

• Sales of $765 million, down 3% vs. prior year; Core sales down 3%.
• GAAP diluted net EPS of $0.58; Adjusted diluted net EPS of $0.73 vs. prior guide of $0.65 to $0.69.
• Operating cash flow was $132 million; Adjusted Free Cash Flow was $128 million, representing 113% Adjusted Free Cash Flow Conversion.
• Initiates Q4 2023 guidance for Adjusted diluted net EPS of $0.75 to $0.79.

Headline financials

Revenue & EPS history

Vontier provided the following outlook: Total sales down low-single digits; Core sales down low-single digits; Baseline core sales growth of high-single digits. Adjusted operating profit margin down ~80 basis points; Baseline adjusted operating profit margin expansion of ~180 basis points. Adjusted diluted EPS in the range of $2.83 to $2.87, compares to the prior range of $2.79 to $2.87. Adjusted free cash flow conversion of ~90-100%