Core Insights - Veralto (VLTO) reported quarterly earnings of $0.93 per share, exceeding the Zacks Consensus Estimate of $0.89 per share, and showing an increase from $0.85 per share a year ago, resulting in an earnings surprise of +4.49% [1] - The company achieved revenues of $1.37 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 2.06% and up from $1.29 billion year-over-year [2] - Veralto has consistently surpassed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Veralto's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $0.92 on revenues of $1.37 billion, and for the current fiscal year, it is $3.71 on revenues of $5.43 billion [7] Industry Context - The Waste Removal Services industry, to which Veralto belongs, is currently ranked in the top 39% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Core Insights - Veralto reported strong second quarter results driven by effective commercial execution and consistent customer demand, leading to mid-single-digit core sales growth and double-digit adjusted earnings per share growth [2][10] - The company raised its full-year core sales growth and adjusted earnings per share guidance based on stable demand and macroeconomic conditions [2][5] Financial Performance - Total sales increased by 6.4% year-over-year to $1,371 million, with non-GAAP core sales growth of 4.8% [10][20] - Adjusted diluted earnings per share for the second quarter were $0.93, compared to $0.81 in the same period last year [10][14] - Operating profit margin was reported at 22.8%, while non-GAAP adjusted operating profit margin was 23.7% [10][14] Guidance and Forecast - For the third quarter of 2025, Veralto anticipates non-GAAP core sales growth of mid-single digits year-over-year, with adjusted diluted earnings per share expected to be between $0.91 and $0.95 [4][22] - The full-year adjusted earnings per share guidance was raised to a range of $3.72 to $3.80, up from the previous range of $3.60 to $3.70 [5][22] - The company expects full-year core sales growth to be mid-single digits, an increase from the prior low-to-mid-single-digit assumption [5][22] Cash Flow and Financial Health - Operating cash flow for the second quarter was $339 million, with non-GAAP free cash flow at $323 million, reflecting a year-over-year increase of approximately 34.5% [10][23] - The company maintains a strong financial position and is focused on prudent capital allocation to enhance long-term shareholder value [2][5] Company Overview - Veralto is a global leader in essential technology solutions with annual sales exceeding $5 billion and a workforce of nearly 17,000 associates [7][10] - The company is dedicated to addressing complex societal challenges, particularly in providing access to clean water and safe food [7][10]

Core Insights - Veralto Corporation (VLTO) is set to release its second-quarter 2025 results on July 29, with earnings estimated at 89 cents per share, reflecting a 4.7% year-over-year increase, and revenues projected at $1.34 billion, indicating a 4.3% rise year-over-year [2][9]. Earnings Performance - VLTO has a strong earnings surprise history, having exceeded the Zacks Consensus Estimate in each of the last four quarters, with an average surprise of 6.4% [3]. Revenue Expectations - The Water Quality segment is expected to generate revenues of $801 million, representing a 3% year-over-year growth, while the Product Quality & Inspection segment is estimated to bring in $534 million, up 4.5% from the previous year [4][9]. Operating Efficiency - Robust operating efficiency is anticipated to contribute to bottom-line growth in the upcoming quarter [5]. Earnings Prediction Model - The current model does not predict a definitive earnings beat for VLTO, as it has an Earnings ESP of -0.43% and a Zacks Rank of 2 (Buy) [6].

Core Insights - Veralto Corporation has committed €20 million to Emerald Technology Ventures' Global Water Fund II, emphasizing its dedication to advancing water innovation and addressing global water challenges [1][4][5] - Emerald Technology Ventures, with over €1.2 billion in assets under management, focuses on sustainable industrial innovation and has a strong presence in the venture capital space [2][6] - The partnership will provide Veralto with access to early- and growth-stage water technology businesses, enhancing its ability to meet customer needs and scale innovative solutions [3][4] Company Overview - Veralto is a global leader in essential technology solutions, generating over $5 billion in annual sales and employing nearly 17,000 associates [5] - The company's mission is to safeguard vital resources, including clean water and safe food, through innovative solutions [5] Fund Details - Emerald's Global Water Fund II, set to launch in October, aims to raise between €150 million and €180 million to accelerate innovation across the water value chain [4]

Company Overview - Veralto (VLTO) is expected to report earnings for the quarter ended June 2025, with a consensus estimate of $0.89 per share, reflecting a year-over-year increase of +4.7% [3] - Revenues are anticipated to reach $1.34 billion, which is a 4.3% increase from the same quarter last year [3] Earnings Expectations - The consensus EPS estimate has been revised 0.34% higher in the last 30 days, indicating a positive reassessment by analysts [4] - A positive Earnings ESP of +1.55% suggests that analysts are optimistic about Veralto's earnings prospects, combined with a Zacks Rank of 2 (Buy) [12] Historical Performance - In the last reported quarter, Veralto exceeded the expected earnings of $0.87 per share by delivering $0.95, resulting in a surprise of +9.20% [13] - Over the past four quarters, Veralto has consistently beaten consensus EPS estimates [14] Industry Comparison - Waste Connections (WCN), a peer in the Waste Removal Services industry, is expected to report earnings of $1.25 per share for the same quarter, indicating a year-over-year change of +0.8% [18] - Waste Connections has an Earnings ESP of +0.5% and a Zacks Rank of 3 (Hold), suggesting a likelihood of beating the consensus EPS estimate [19]

Core Points - Veralto Corporation will host its second quarter 2025 earnings conference call on July 29, 2025, at 8:30 a.m. ET [1] - The earnings news release, webcast slides, and related materials will be available on Veralto's website after market close on July 28, 2025 [3][4] Company Overview - Veralto has annual sales exceeding $5 billion and is recognized as a global leader in essential technology solutions [4] - The company employs nearly 17,000 associates and is dedicated to addressing complex societal challenges, particularly in providing access to clean water, safe food, and trusted essential goods [4]

Company Overview - Veralto Corporation (NYSE: VLTO) is an American company specializing in water analytics, water treatment, marking and coding, packaging, and color solutions [1] - The company was previously a division within DHR and was spun off in 2023 [1] Investment Insights - The article reflects an independent analyst's interest in investing at the intersection of value and growth, focusing on small-cap companies [1] - The analyst employs a qualitative approach to identify long-term compounders and special situations [1]

Core Insights - Veralto (VLTO) reported revenue of $1.33 billion for the quarter ended March 2025, reflecting a year-over-year increase of 6.9% and surpassing the Zacks Consensus Estimate by 3.79% [1] - The company's EPS for the quarter was $0.95, up from $0.84 in the same quarter last year, exceeding the consensus estimate of $0.87 by 9.20% [1] Financial Performance Metrics - Sales in Product Quality & Innovation reached $538 million, exceeding the average estimate of $512.40 million by analysts, marking an 8.3% year-over-year increase [4] - Water Quality sales amounted to $794 million, surpassing the average estimate of $772 million, with a year-over-year growth of 6% [4] - Operating profit for Water Quality was reported at $198 million, slightly above the average estimate of $195.20 million [4] - Operating profit for Other segments was -$22 million, better than the average estimate of -$25 million [4] - Operating profit in Product Quality & Innovation was $146 million, exceeding the average estimate of $141.15 million [4] Stock Performance - Over the past month, Veralto's shares have returned -4.6%, compared to a -0.2% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

Core Insights - Veralto Corporation (VLTO) reported strong first-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1] - The stock has underperformed compared to the industry and the Zacks S&P 500 Composite over the past year [2] Financial Performance - Adjusted earnings per share for the quarter were 95 cents, surpassing the consensus by 9.2% and increasing 13.1% year over year [1] - Total revenues reached $1.33 billion, beating the consensus by 3.8% and growing 6.9% from the previous year [1] - The Water Quality segment generated revenues of $794 million, remaining flat year over year and exceeding the estimate of $772 million [3] - The Product, Quality & Innovation segment saw revenues of $538 million, an 8.3% year-over-year increase, outperforming the projection of $512.4 million [3] - Adjusted EBITDA was $343 million, reflecting an 8.9% rise from the year-ago quarter, with an adjusted operating EBITDA margin improvement of 50 basis points to 25.8% [3] Cash Flow and Balance Sheet - Veralto ended the quarter with cash and cash equivalents of $1.24 billion, up from $827 million in the prior year [4] - Long-term debt was reported at $2.63 million, slightly up from $2.62 billion at the end of the previous quarter [4] - The company generated $157 million in cash from operating activities, with capital expenditures of $15 million, resulting in free cash flow of $142 million [4] Future Guidance - For Q2 2025, Veralto anticipates revenue growth in the low-to-mid single-digit range year over year, with adjusted diluted earnings per share projected between 84 cents and 88 cents, below the Zacks Consensus Estimate of 92 cents [5] - For the full year 2025, the company reaffirms its adjusted earnings per share guidance of $3.60 to $3.70, with a midpoint of $3.65, slightly below the current year's Zacks Consensus Estimate of $3.66 [6] - The outlook assumes core sales growth in the low-to-mid single-digit range and adjusted operating profit margins to expand by up to 50 basis points year over year or remain flat [6]

Financial Data and Key Metrics Changes - Total sales grew 6.9% year over year to over $1.3 billion, with core sales growth at 7.8% driven by broad-based volume gains across both segments [25][26] - Adjusted earnings per share (EPS) increased 13% year over year to $0.95, exceeding guidance primarily due to better-than-expected sales volumes [11][27] - Adjusted operating profit margin expanded 50 basis points year over year to 25%, marking an all-time high [11][27] Business Line Data and Key Metrics Changes - Water Quality segment sales increased 6% year over year to $794 million, with core sales growing 7.4% driven by strong demand for water treatment solutions [28][29] - PQI segment sales grew 8.3% year over year to $538 million, with core sales growth led by volume growth of 6.7% and price increases contributing 1.6% [30][31] Market Data and Key Metrics Changes - Sales growth in Western Europe was robust at nearly 11%, with double-digit growth in both segments [13] - North America saw sales growth of approximately 8%, with high single-digit growth in both segments [13][15] - High growth markets experienced a 6% year-over-year increase, with strong growth in Latin America, India, and the Middle East [17] Company Strategy and Development Direction - The company is actively deploying countermeasures to mitigate changes in the global trade and tariff landscape, enhancing operational flexibility [8][19] - The acquisition of AquaFetus for $20 million is expected to expand the company's UV treatment portfolio and enhance service capabilities in Europe [12] - The company aims to leverage its enterprise system to drive continuous improvement and agility in navigating macroeconomic challenges [22][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic macroeconomic environment, citing the essential nature of their products and durable business model [19][38] - The company anticipates steady growth in the Water Quality segment due to the critical nature of its products and high levels of recurring sales [29] - Management reaffirmed full-year 2025 adjusted EPS guidance of $3.6 to $3.7 per share, with core sales growth expected to remain in the low to mid-single digits [34][36] Other Important Information - The company generated $142 million in free cash flow, an increase of $40 million year over year, driven by growth in earnings [27][32] - The company opened its first U.S. factory in Grand Rapids, Michigan, to support domestic UV water treatment customers, enhancing supply chain flexibility [20][21] Q&A Session Summary Question: Can you provide more color on the sequencing of tariff mitigation? - Management indicated confidence in mitigating tariffs, with gross exposure estimated at 3.5% of sales, and emphasized ongoing optimization efforts [44][45] Question: Have you seen any changes in demand indicators for Videojet? - Management reported strong demand remains for the PQI business, with no indications of softening in order patterns [48][49] Question: Can you discuss price elasticity regarding consumables versus equipment? - Management noted a surgical approach to pricing, with 80% of sales tied to essential goods, indicating a sticky relationship with customers [55][57] Question: What are the implications of the recent EPA announcement regarding PFAS? - Management expressed excitement about opportunities in PFAS analysis and treatment, emphasizing their commitment to innovation in this area [59][60] Question: How do you view the impact of tariffs on your competitive positioning? - Management sees potential advantages in market dislocations, leveraging their asset-light manufacturing model to navigate tariff impacts effectively [88][89]