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Sep 29, 2023

Veralto Q3 2023 Earnings Report

Veralto's third quarter performance in 2023 reflected solid operating execution amidst its separation from Danaher.

Key Takeaways

Veralto reported a 3% increase in sales to $1,255 million, with a 1% non-GAAP core sales growth. Net earnings were $205 million, or $0.83 per diluted common share. The company generated $232 million in non-GAAP free cash flow and expects to initiate a quarterly dividend of $0.09 per common share in Q4 2023.

Sales increased 3% year-over-year to $1,255 million, with non-GAAP core sales growth of 1%.

Operating profit margin was 21.8%, and non-GAAP adjusted operating profit margin was 22.4%.

Net earnings were $205 million, or $0.83 per diluted common share.

Non-GAAP adjusted diluted net earnings per common share were $0.75.

Total Revenue
$1.26B
Previous year: $3.62B
-65.4%
EPS
$0.75
Previous year: $2.55
-70.6%
Core Sales Growth
1%
Gross Profit
$723M
Previous year: $694M
+4.2%
Cash and Equivalents
$426M
Free Cash Flow
$232M
Previous year: $507M
-54.2%
Total Assets
$5.16B

Veralto

Veralto

Forward Guidance

For the fourth quarter 2023, the Company anticipates that non-GAAP core sales will be flat to down low-single digits year-over-year. The Company anticipates adjusted operating profit margin in the range of 23.5% to 24.5% and adjusted diluted earnings per share in the range of $0.79 to $0.84.

Challenges Ahead

  • Non-GAAP core sales will be flat to down low-single digits year-over-year
  • Reduced demand for consumer-packaged goods impacting sales in its Product Quality and Innovation segment
  • Continued demand weakness in China