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VLTO NYSE· Veralto Corp
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VLTO NYSE· Veralto Corp
Earnings report Q3 2023

VLTO Reports Solid Revenue Growth in Latest Quarter

Segments of revenue

VLTO reported sales of $1.255 billion for the three-month period ended September 29, 2023, representing a slight increase compared to the same period last year when sales were $1.219 billion. For the nine-month period ended September 29, 2023, sales amounted to $3.733 billion, up from $3.622 billion in the prior year.

Strengths

VLTO demonstrated solid revenue growth in the latest quarter, with a modest increase in sales compared to the same period last year. The company's ability to maintain steady sales growth is commendable, especially considering the challenging macroeconomic environment. Management attributes the growth to their focus on profitability improvements and leveraging VES (presumably a company resource) to manage the impact of the challenging market conditions.

Challenges

Despite the overall positive revenue growth, VLTO anticipates weakness in demand for consumer-packaged goods to impact year-over-year core sales in the Product Quality and Innovation segment. Additionally, broad weakness in China is expected to impact year-over-year core sales in both the Water Quality and Product Quality and Innovation segments. These challenges highlight the potential risks and uncertainties that VLTO faces in its operations.

Noteworthy

VLTO reported net earnings of $205 million for the latest quarter, slightly lower than the $218 million reported in the same period last year. However, the company's comprehensive income increased to $146 million, compared to $121 million in the prior year. It is worth mentioning that VLTO experienced a significant foreign currency translation adjustment, resulting in a loss of $62 million for the quarter.

Summary

VLTO delivered solid revenue growth in the latest quarter, with sales slightly increasing compared to the same period last year. The company's ability to navigate the challenging macroeconomic environment and focus on profitability improvements is commendable. However, VLTO faces challenges in the form of weakness in demand for consumer-packaged goods and broad weakness in China, which may impact core sales in certain segments. Overall, VLTO's performance in the latest quarter demonstrates resilience and strategic management in the face of market challenges.

Source documents

Form 10-Q  filed on Oct 26, 2023
1 pages scanned

Reference data

Company financials Q3 revenue 1.29B
Analyst estimates Q3 EPS beat by 7.97%
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