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Dec 31, 2022

Vontier Q4 2022 Earnings Report

Vontier reported a strong Q4 2022 with revenue up 10% and adjusted EPS exceeding prior guidance.

Key Takeaways

Vontier Corporation reported a 10% increase in revenue to $871.9 million for Q4 2022. GAAP diluted EPS was $0.43, while adjusted diluted EPS was $0.81, exceeding the prior guidance. The company's core revenue growth was 10.3%, driven by increased demand for fueling aftermarket & services, alternative fuel dispensing, environmental products, and car wash technologies.

Revenues increased by 10% to $872 million compared to the prior year.

Core revenue growth was 10% (11% excluding EMV).

GAAP diluted EPS was $0.43.

Adjusted diluted EPS was $0.81, surpassing the prior guidance of $0.73 to $0.78.

Total Revenue
$872M
Previous year: $790M
+10.3%
EPS
$0.81
Previous year: $0.83
-2.4%
Core Revenue Growth
10.3%
Gross Profit
$385M
Previous year: $356M
+8.0%
Cash and Equivalents
$205M
Previous year: $573M
-64.3%
Free Cash Flow
$164M
Previous year: $124M
+32.3%
Total Assets
$4.34B
Previous year: $4.35B
-0.1%

Vontier

Vontier

Forward Guidance

Vontier anticipates a decline in total revenue and adjusted operating profit margin for 2023, but expects positive adjusted diluted EPS and adjusted free cash flow conversion.

Positive Outlook

  • Baseline core revenue growth of +MSD
  • Baseline adjusted operating profit margin expansion of 180 to 200 basis points
  • Adjusted diluted EPS in the range of $2.73 to $2.83
  • Adjusted free cash flow conversion of ~90-100%

Challenges Ahead

  • Total revenue down low-to-mid-single digits
  • Core revenue down mid-single digits
  • Adjusted operating profit margin down 60 to 80 basis points