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Sep 29, 2023

Vontier Q3 2023 Earnings Report

Vontier reported strong financial performance, exceeding guidance, driven by core revenue growth and free cash flow.

Key Takeaways

Vontier Corporation reported Q3 2023 sales of $765.4 million, a 3% year-over-year decline. GAAP diluted net EPS was $0.58, while adjusted diluted net EPS was $0.73, exceeding prior guidance. The company generated $128 million in adjusted free cash flow, representing a 113% adjusted free cash flow conversion. Vontier initiated Q4 2023 adjusted diluted net EPS guidance of $0.75 to $0.79 and narrowed full-year 2023 adjusted diluted net EPS guidance to $2.83 to $2.87.

Sales of $765 million, down 3% vs. prior year; Core sales down 3%.

GAAP diluted net EPS of $0.58; Adjusted diluted net EPS of $0.73 vs. prior guide of $0.65 to $0.69.

Operating cash flow was $132 million; Adjusted Free Cash Flow was $128 million, representing 113% Adjusted Free Cash Flow Conversion.

Initiates Q4 2023 guidance for Adjusted diluted net EPS of $0.75 to $0.79.

Total Revenue
$765M
Previous year: $788M
-2.9%
EPS
$0.73
Previous year: $0.86
-15.1%
Gross Profit
$359M
Previous year: $360M
-0.3%
Cash and Equivalents
$264M
Previous year: $122M
+116.6%
Free Cash Flow
$114M
Previous year: $74.8M
+52.7%
Total Assets
$4.22B
Previous year: $4.26B
-1.0%

Vontier

Vontier

Forward Guidance

Vontier provided the following outlook: Total sales down low-single digits; Core sales down low-single digits; Baseline core sales growth of high-single digits. Adjusted operating profit margin down ~80 basis points; Baseline adjusted operating profit margin expansion of ~180 basis points. Adjusted diluted EPS in the range of $2.83 to $2.87, compares to the prior range of $2.79 to $2.87. Adjusted free cash flow conversion of ~90-100%