WALTHAM, Mass. – Veralto Corporation (NYSE: VLTO), a global provider of water and product quality solutions, reported strong first-quarter performance with earnings that beat analyst expectations, sending the stock higher 1.3%.
The company announced 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 expectations, reaching $1.25 billion versus the expected $1.24 billion, up 1.8% year-over-year.
President and CEO Jennifer L. Honeycutt highlighted the company's culture of continuous improvement as a driver of the quarter's success, citing the strength of 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 hit $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%. 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 guidance of $3.20-$3.30, and now anticipates a free cash flow conversion rate of 100%. % to 110%.
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