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Jun 28, 2024

Veralto Q2 2024 Earnings Report

Veralto's second quarter performance reflected durability, driven by strong commercial and operational execution, delivering core sales growth and margin expansion.

Key Takeaways

Veralto reported a 2.8% increase in sales to $1,288 million, with a non-GAAP core sales growth of 3.8%. Net earnings were $203 million, or $0.81 per diluted share, while non-GAAP adjusted net earnings reached $213 million, or $0.85 per diluted share. The company raised its full-year adjusted earnings per share guidance, reflecting stronger operational execution and a more positive view of end markets.

Sales increased 2.8% year-over-year to $1,288 million, with non-GAAP core sales growth of 3.8%.

Operating profit margin was 23.2%, and the non-GAAP adjusted operating profit margin was 24.0%.

Net earnings were $203 million, or $0.81 per diluted common share.

Non-GAAP adjusted net earnings were $213 million, or $0.85 per diluted common share.

Total Revenue
$1.29B
Previous year: $1.25B
+2.8%
EPS
$0.85
Previous year: $0.85
+0.0%
Core Sales Growth
3.8%
Gross Profit
$764M
Previous year: $712M
+7.3%
Cash and Equivalents
$1.04B
Free Cash Flow
$240M
Previous year: $289M
-17.0%
Total Assets
$5.9B

Veralto

Veralto

Forward Guidance

For the third quarter of 2024, Veralto anticipates non-GAAP core sales growth in the low-to-mid single-digits year-over-year with adjusted operating profit margin of approximately 23.5% and adjusted diluted earnings per share in the range of $0.82 to $0.86 per share. For the full year 2024, the Company maintained its core sales growth target of low single-digits and raised its target for adjusted operating profit margin expansion to ~75 basis points, up from 50-75 basis points year-over-year. The Company also raised its guidance for adjusted diluted earnings per share to a range of $3.37 to $3.45, up from its prior guidance of $3.25 to $3.34 per share. Its free cash flow conversion guidance was maintained at a range of 100% to 110%.

Positive Outlook

  • Non-GAAP core sales growth in the low-to-mid single-digits year-over-year for Q3 2024.
  • Adjusted operating profit margin of approximately 23.5% for Q3 2024.
  • Adjusted diluted earnings per share in the range of $0.82 to $0.86 for Q3 2024.
  • Core sales growth target of low single-digits for full year 2024 maintained.
  • Adjusted diluted earnings per share to a range of $3.37 to $3.45 for full year 2024.