NYSE$VNT

Vontier Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Vontier reported a 10% decrease in sales, with core sales down 7%, but demonstrated strength in segments like Mobility Technologies and Repair Solutions.

Vontier Corporation reported Q4 2023 results, with sales of $789 million, a 10% decrease year-over-year. GAAP diluted net EPS was $0.68, and adjusted diluted net EPS was $0.80, exceeding prior guidance. The company highlighted progress in its Connected Mobility strategy and operational excellence.

  • Sales decreased by 10% compared to the prior year, with core sales down 7%.
  • GAAP diluted net EPS was $0.68, while adjusted diluted net EPS was $0.80, surpassing previous guidance.
  • Operating cash flow reached $165 million, and adjusted free cash flow was $153 million, representing a 122% adjusted free cash flow conversion.
  • The company repurchased approximately $13 million in shares and repaid $60 million in debt during the quarter.

Headline financials

Total Revenue

$789M

Previous: $872M-9.5%
EPS (adj)

$0.80

Previous: $0.81-1.2%
Core Sales Growth

-7.3%

Previous: 10.3%-170.9%
Capital Expenditures

-$16.6M

Previous: $17M-197.6%
Net Income

$106M

Previous: $67.7M+56.9%
Operating Income

$146M

Previous: $156M-6.4%
Gross Profit

$371M

Previous: $385M-3.6%
R&D Expense

$43.1M

No prior period
Stock-Based Comp

$7.4M

Previous: $5.3M+39.6%

Revenue & EPS history

Vontier · Revenue · Quarterly

$789M

Q4 2023-9.5%vs Q4 2022
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 initiated full year 2024 guidance for Adjusted diluted net EPS of $3.00 to $3.15 and Q1 2024 guidance for Adjusted diluted net EPS of $0.68 to $0.72.

Tailwinds

  • Total sales $3,050 to $3,110 million.
  • Core sales growth +4 to 6%.
  • Adjusted operating profit margin +80 to 110 basis point expansion year-over-year.
  • Adjusted diluted net EPS in the range of $3.00 to $3.15.
  • Adjusted free cash flow conversion of ~90 to 100%.

Headwinds

  • Total sales $745 to $760 million for Q1 2024.
  • Core sales growth +2 to 4% for Q1 2024.
  • Adjusted operating profit margin expansion of 40 to 80 basis points year-over-year for Q1 2024.
  • Adjusted diluted net EPS of $0.68 to $0.72 for Q1 2024.
  • The company expects the sunset of EMV-related sales to negatively impact revenue.

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 Q4 2023

Historical avgQ4 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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