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Dec 31, 2023

Veralto Q4 2023 Earnings Report

Veralto reported a sales increase of 3.3% year-over-year, with non-GAAP core sales growth of 1.7%. Net earnings were $200 million, or $0.81 per diluted common share.

Key Takeaways

Veralto reported fourth-quarter results with sales increasing 3.3% year-over-year to $1,288 million and non-GAAP core sales growth of 1.7%. Net earnings were $200 million, or $0.81 per diluted common share, while non-GAAP adjusted net earnings were $215 million, or $0.87 per diluted common share.

Sales increased 3.3% year-over-year to $1,288 million, with non-GAAP core sales growth of 1.7%.

Operating profit margin was 22.2% and non-GAAP adjusted operating profit margin was 23.8%.

Net earnings were $200 million, or $0.81 per diluted common share.

Non-GAAP, adjusted net earnings were $215 million, or $0.87 per diluted common share.

Total Revenue
$1.29B
Previous year: $1.25B
+3.2%
EPS
$0.87
Previous year: $0.88
-1.1%
Core Sales Growth
1.7%
Gross Profit
$746M
Previous year: $720M
+3.6%
Cash and Equivalents
$762M
Free Cash Flow
$241M
Previous year: $329M
-26.7%
Total Assets
$5.69B
Previous year: $4.83B
+18.0%

Veralto

Veralto

Veralto Revenue by Segment

Forward Guidance

For the first quarter of 2024, Veralto anticipates that non-GAAP core sales will be approximately flat year-over-year with adjusted operating profit margin in the range of 23.0% to 23.5% and adjusted diluted earnings per share in the range of $0.73 to $0.78 per share. For the full year 2024, the Company anticipates 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 is targeting adjusted diluted earnings per share in the range of $3.20 to $3.30 with free cash flow conversion of approximately 100%.

Positive Outlook

  • Non-GAAP core sales expected to be approximately flat year-over-year in Q1 2024.
  • Adjusted operating profit margin expected in the range of 23.0% to 23.5% for Q1 2024.
  • Adjusted diluted earnings per share expected in the range of $0.73 to $0.78 per share for Q1 2024.
  • Non-GAAP core sales expected to grow low-single digits year-over-year for full year 2024.
  • Adjusted operating profit margin expected to expand 50 to 75 basis points year-over-year for full year 2024.

Revenue & Expenses

Visualization of income flow from segment revenue to net income