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Veralto 8-K Report, Financial Results (Apr 24, 2024)

Reports
Earnings & Results
Filing Date
Filed April 24, 2024
Period End
April 23, 2024
Security
VLTO
In the record · 2023–202610-K310-Q108-K28

VLTO filed 3 annual reports (10-K), 10 quarterly reports (10-Q) and 28 current reports (8-K) between 2023 and 2026.

  1. Leadership change8-K · Dec ’23Dec ’23
  2. Material agreement8-K · Jun ’26Jun ’26

01—Abstract

Summary

Summary of the 8-K filed April 24, 2024. Cited figures are marked; the original filing is the authoritative source.

Veralto Corporation (NYSE: VLTO) reported first quarter 2024 results for the quarter ended March 29, 2024, in a press release furnished as Exhibit 99.1 under Item 2.02 of Form 8-K.

Sales rose 1.8% year-over-year to $1,246 milliona, with non-GAAP core sales growth of 1.8%. Operating profit margin was 23.5% on a GAAP basis and 24.5% on an adjusted basis. GAAP net earnings were $184 million, or $0.74 per diluted share, compared with $225 million, or $0.91 per diluted share, in the prior-year period.

Adjusted net earnings were $209 millionb, or $0.84 per diluted share, compared with $0.78 in the prior-year period on an adjusted basis. Management cited continued strength in industrial markets within the Water Quality segment, aggregate price increases in line with historical levels, and modest signs of recovery in consumer-packaged goods markets within the Product Quality and Innovation segment. Operating cash flow was $115 million and non-GAAP free cash flow was $102 million, compared with $156 million and $147 million, respectively, in the prior-year quarter.

For 2024, the company raised its adjusted diluted earnings per share target to $3.25 to $3.34c, up from $3.20 to $3.30, and raised its free cash flow conversion estimate to 100% to 110%, up from approximately 100%. It continues to expect low-single-digit non-GAAP core sales growth and adjusted operating profit margin expansion of 50 to 75 basis points for the full year. For the second quarter, it anticipates low-single-digit core sales growth, an adjusted operating profit margin of approximately 23%, and adjusted diluted EPS of $0.75 to $0.80.

02—Key points

Key Highlights

  1. Sales of $1,246 million, up 1.8% year-over-year, with non-GAAP core sales growth of 1.8%; Water Quality core sales grew 2.8% while Product Quality and Innovation core sales grew 0.2%.
  2. GAAP diluted EPS of $0.74 versus $0.91 a year earlier; adjusted diluted EPS of $0.84 versus $0.78 a year earlier.
  3. Adjusted operating profit margin of 24.5%, compared with 23.6% in the prior-year period, while GAAP operating profit margin was 23.5%.
  4. Full-year 2024 adjusted diluted EPS guidance raised to $3.25 to $3.34 from $3.20 to $3.30.
  5. Free cash flow conversion target raised to 100% to 110% from approximately 100%.
  6. Operating cash flow of $115 million and free cash flow of $102 million, both lower than the prior-year quarter's $156 million and $147 million.
  7. Second-quarter guidance calls for low-single-digit core sales growth, an adjusted operating profit margin of approximately 23%, and adjusted diluted EPS of $0.75 to $0.80.

03—Questions

Frequently Asked Questions

  1. How did Veralto perform in the first quarter of 2024?

    Sales rose 1.8% year-over-year to $1,246 million. GAAP net earnings were $184 million, or $0.74 per diluted share, while adjusted net earnings were $209 million, or $0.84 per diluted share.

  2. Did Veralto change its full-year 2024 outlook?

    Yes, in part. The company raised its adjusted diluted EPS target to $3.25 to $3.34 from $3.20 to $3.30 and raised its free cash flow conversion estimate to 100% to 110%. It continues to expect low-single-digit core sales growth and 50 to 75 basis points of adjusted operating margin expansion.

  3. What drove sales in the quarter?

    Management said core sales growth was led by continued strength in industrial markets within the Water Quality segment, along with aggregate price increases in line with historical levels. The Product Quality and Innovation segment showed modest signs of recovery in consumer-packaged goods markets.

  4. How did cash flow compare with the prior year?

    Operating cash flow was $115 million, down from $156 million, and non-GAAP free cash flow was $102 million, down from $147 million in the first quarter of 2023. Capital expenditures were $13 million, compared with $9 million a year earlier.

  5. What are the main differences between GAAP and non-GAAP results this quarter?

    Non-GAAP adjustments in the quarter included $11 million of amortization of acquisition-related intangible assets, $1 million of separation costs, and a $15 million loss on the disposition of certain product lines. These items lift adjusted net earnings to $209 million from GAAP net earnings of $184 million.

04—Continue

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