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Mar 29, 2024

Veralto Q1 2024 Earnings Report

Veralto's first quarter results reflected a culture of continuous improvement and the ability to deliver on commitments.

Key Takeaways

Veralto reported a 1.8% increase in sales to $1,246 million, with non-GAAP core sales growth of 1.8%. Net earnings were $184 million, or $0.74 per diluted share, while non-GAAP adjusted net earnings were $209 million, or $0.84 per diluted share. The company delivered strong operating margin expansion and high-single digit earnings growth.

Sales increased 1.8% year-over-year to $1,246 million, with non-GAAP core sales growth of 1.8%.

Operating profit margin was 23.5% and non-GAAP adjusted operating profit margin was 24.5%.

Net earnings reached $184 million, or $0.74 per diluted common share.

Non-GAAP adjusted net earnings were $209 million, or $0.84 per diluted common share.

Total Revenue
$1.25B
Previous year: $1.23B
+1.7%
EPS
$0.84
Previous year: $0.91
-7.7%
Core Sales Growth
1.8%
Gross Profit
$758M
Previous year: $696M
+8.9%
Cash and Equivalents
$827M
Free Cash Flow
$102M
Previous year: $147M
-30.6%
Total Assets
$5.71B

Veralto

Veralto

Forward Guidance

For the second quarter of 2024, Veralto anticipates non-GAAP core sales growth in the low-single digits with adjusted operating profit margin of approximately 23% and adjusted diluted earnings per share in the range of $0.75 to $0.80 per share. For the full year 2024, the Company continues to anticipate that non-GAAP core sales will grow low-single digits year-over-year and that adjusted operating profit margin will expand 50 to 75 basis points year-over-year. The Company increased its target for adjusted diluted earnings per share to a range of $3.25 to $3.34, up from its prior guidance of $3.20 to $3.30 per share and increased its estimate for free cash flow conversion to a range of 100% to 110%, up from its prior guidance of ~100%.

Positive Outlook

  • Non-GAAP core sales growth in the low-single digits for Q2 2024.
  • Adjusted operating profit margin of approximately 23% for Q2 2024.
  • Adjusted diluted earnings per share in the range of $0.75 to $0.80 for Q2 2024.
  • Non-GAAP core sales to grow low-single digits year-over-year for full year 2024.
  • Adjusted operating profit margin to expand 50 to 75 basis points year-over-year for full year 2024.