Veralto Q2 sales, adjusted EPS beat estimates, raises FY guidance

Overview

• Veralto Q2 sales rise 6.4% yr/yr, beating analyst expectations, per LSEG data

• Adjusted EPS for Q2 beats consensus, reaching $0.93 per share, per LSEG data

• Co raises full year guidance for adjusted EPS and core sales growth

Outlook

• Veralto expects Q3 adjusted EPS of $0.91 to $0.95

• Company raises full-year EPS guidance to $3.72-$3.80

• Company expects full-year core sales growth in mid-single-digits

Result Drivers

• COMMERCIAL EXECUTION - Strong commercial execution and steady customer demand drove Q2 results, according to CEO Jennifer L. Honeycutt

• VERALTO ENTERPRISE SYSTEM - Application of the Veralto Enterprise System supported global growth and operating discipline, per CEO

• SECULAR GROWTH DRIVERS - Growth across end markets attributed to secular growth drivers, leading to raised full-year guidance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the environmental services & equipment peer group is "buy"

• Wall Street's median 12-month price target for Veralto Corp is $109.50, about 5.7% above its July 25 closing price of $103.28

• The stock recently traded at 27 times the next 12-month earnings vs. a P/E of 26 three months ago

Press Release: ID:nPn5z8w0la