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Mar 31, 2023

Vontier Q1 2023 Earnings Report

Vontier reported strong first quarter results, exceeding expectations and raising full year guidance.

Key Takeaways

Vontier Corporation reported a 3.8% year-over-year increase in sales to $776.4 million, driven by a 3.9% increase in core sales. GAAP diluted EPS was $0.53, while adjusted diluted net EPS was $0.68. The company is raising its full-year adjusted diluted net EPS guidance to $2.77 to $2.87.

Sales of $776 million, up 4% vs. prior year; Core sales growth of 4%.

GAAP diluted EPS of $0.53.

Adjusted diluted net EPS of $0.68 vs. prior guide of $0.57 to $0.62.

Adjusted Free Cash Flow was $78 million, representing 73% Adjusted Free Cash Flow Conversion

Total Revenue
$776M
Previous year: $748M
+3.8%
EPS
$0.68
Previous year: $0.7
-2.9%
Core Revenue Growth
3.9%
Gross Profit
$353M
Previous year: $335M
+5.3%
Cash and Equivalents
$208M
Previous year: $145M
+43.5%
Free Cash Flow
$67.3M
Previous year: $28.4M
+137.0%
Total Assets
$4.28B
Previous year: $4.3B
-0.5%

Vontier

Vontier

Forward Guidance

Vontier is initiating Q2 2023 guidance for Adjusted diluted net EPS of $0.61 to $0.66 and increasing full-year 2023 Adjusted diluted net EPS guidance to $2.77 to $2.87.

Positive Outlook

  • Adjusted diluted EPS in the range of $2.77 to $2.87, compares to the prior range of $2.73 to $2.83, or $2.68 to $2.78 excluding a $0.05 contribution from GTT, following the divestiture
  • Adjusted free cash flow conversion of ~90-100%
  • Baseline core sales growth of mid-single digits
  • Adjusted diluted EPS $0.61 to $0.66 for Q2 2023
  • Baseline core sales growth of mid-single digits for Q2 2023

Challenges Ahead

  • Total sales down low-to-mid-single digits for full year 2023
  • Core sales down low-to-mid-single digits for full year 2023
  • Adjusted operating profit margin down 60 to 80 basis points for full year 2023
  • Total sales down mid-single digits for Q2 2023
  • Core sales down low-to-mid-single digits for Q2 2023