WALTHAM, Mass. - Veralto Corporation (NYSE: VLTO), a global provider of water and product quality solutions, reported a solid first-quarter performance with earnings surpassing analyst expectations, sending shares up 1.3%.
The company announced a non-GAAP adjusted EPS of $0.84, which was $0.06 higher than the consensus estimate of $0.78. Revenue for the quarter also exceeded forecasts, coming in at $1.25 billion against the anticipated $1.24 billion, marking a 1.8% increase YoY.
President and CEO Jennifer L. Honeycutt highlighted the company's continuous improvement culture as a driver for the quarter's success, citing strength in industrial markets within the Water Quality segment and price increases in line with historical levels. The company's operating profit margin stood at 23.5%, with a non-GAAP adjusted operating profit margin of 24.5%. Net earnings were reported at $184 million, or $0.74 per diluted common share, and non-GAAP free cash flow reached $102 million.
Looking ahead, Veralto provided guidance for the second quarter of 2024, projecting non-GAAP core sales growth in the low-single digits and an adjusted operating profit margin of approximately 23%. The adjusted diluted EPS is expected to range between $0.75 and $0.80, slightly below the analyst consensus of $0.80. For the full year, the company raised its adjusted EPS guidance to $3.25-$3.34, up from the previous forecast of $3.20-$3.30, and now anticipates a free cash flow conversion rate of 100% to 110%.
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