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Sep 27, 2024

Vontier Q3 2024 Earnings Report

Vontier reported solid third quarter results, exceeding expectations due to strong momentum in Convenience Retail and Fueling markets.

Key Takeaways

Vontier's third-quarter sales reached $750 million, a 2% decrease year-over-year, but core sales increased by 3%. GAAP diluted net EPS was $0.60, while adjusted diluted net EPS was $0.73. The company's operating cash flow stood at $122 million, with an adjusted free cash flow of $109 million, representing a 98% adjusted free cash flow conversion. Vontier narrows full year 2024 adjusted diluted net EPS to midpoint of ~$2.90.

Sales of $750 million, down 2% vs. prior year; Core sales increased 3%.

GAAP diluted net EPS of $0.60; Adjusted diluted net EPS of $0.73.

Operating cash flow was $122 million; Adjusted free cash flow was $109 million, representing 98% Adjusted free cash flow conversion.

Initiates Q4 2024 guidance for adjusted diluted net EPS of ~$0.79

Total Revenue
$750M
Previous year: $765M
-2.0%
EPS
$0.73
Previous year: $0.73
+0.0%
Core Revenue Growth
2.8%
Gross Profit
$354M
Previous year: $359M
-1.3%
Cash and Equivalents
$331M
Previous year: $264M
+25.5%
Free Cash Flow
$103M
Previous year: $114M
-9.6%
Total Assets
$4.31B
Previous year: $4.22B
+2.0%

Vontier

Vontier

Forward Guidance

Vontier initiates Q4 2024 guidance for adjusted diluted net EPS of ~$0.79 and narrows full year 2024 adjusted diluted net EPS to midpoint of ~$2.90.

Positive Outlook

  • Total sales approximately $770 million for Q4 2024
  • Core sales approximately +1.5% for Q4 2024
  • Adjusted diluted net earnings per share approximately $0.79 for Q4 2024
  • Total sales $2,955 to $2,985 million for full year 2024
  • Core sales +0.7% to +1.7% for full year 2024

Challenges Ahead

  • Adjusted operating profit margin approximately flat year-over-year for full year 2024
  • Adjusted diluted net earnings per share in the range of $2.86 to $2.92 for full year 2024
  • Adjusted free cash flow conversion of ~90% for full year 2024
  • Adjusted operating profit margin down approximately 20 basis points year-over-year for Q4 2024