Vontier Q2 2023 Earnings Report
Key Takeaways
Vontier Corporation announced its Q2 2023 results, with sales of $764.4 million, a 1.5% decrease year-over-year. GAAP diluted EPS was $0.62, while adjusted diluted net EPS was $0.67, exceeding prior guidance. The company has raised its full-year 2023 adjusted diluted net EPS guidance to $2.79 to $2.87.
Sales declined 1.5% year-over-year to $764.4 million, with a core sales decrease of 1.6%.
GAAP diluted EPS was $0.62, and adjusted diluted net EPS was $0.67, surpassing the prior guidance of $0.61 to $0.66.
Operating profit was $120.6 million, down 11.6% year-over-year, while adjusted operating profit was $160.1 million, a 4.1% decrease.
The company repurchased approximately $32 million in shares and repaid $100 million in debt during the quarter.
Vontier
Vontier
Forward Guidance
Vontier provided Q3 2023 and full-year 2023 outlook. For Q3 2023, adjusted diluted EPS is expected to be $0.65 to $0.69. The full-year 2023 adjusted diluted EPS guidance is increased to $2.79 to $2.87.
Positive Outlook
- Baseline core sales growth of mid-single digits-plus
- Adjusted diluted EPS $0.65 to $0.69
- Adjusted diluted EPS in the range of $2.79 to $2.87
- Adjusted free cash flow conversion of ~90-100%
Challenges Ahead
- Total sales down mid-single digits
- Core sales down mid-single digits
- Adjusted operating profit margin down 370 to 420 basis points year-over-year
- Baseline adjusted operating profit margin down 70 to 100 basis points year-over-year