Yahoo Finance Veralto Corporation (NYSE:VLTO) First-Quarter Results Just Came Out: Here's What Analysts Are Forecasting For This Year
Investors in Veralto Corporation (NYSE:VLTO) had a good week, as its shares rose 5.6% to close at US$93.79 following the release of its quarterly results. Veralto reported US$1.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$0.74 beat expectations, being 3.2% higher than what the analysts expected. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.
View our latest analysis for Veralto
Following the latest results, Veralto's eleven analysts are now forecasting revenues of US$5.15b in 2024. This would be an okay 2.0% improvement in revenue compared to the last 12 months. Statutory earnings per share are expected to dip 3.1% to US$3.13 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$5.14b and earnings per share (EPS) of US$3.12 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$97.60, showing that the business is executing well and in line with expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Veralto analyst has a price target of US$104 per share, while the most pessimistic values it at US$89.00. Even so, with a relatively close grouping of estimates, it looks like the analysts are quite confident in their valuations, suggesting Veralto is an easy business to forecast or the the analysts are all using similar assumptions.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. The period to the end of 2024 brings more of the same, according to the analysts, with revenue forecast to display 2.7% growth on an annualised basis. That is in line with its 2.4% annual growth over the past year. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 6.7% per year. So it's pretty clear that Veralto is expected to grow slower than similar companies in the same industry.
The Bottom Line
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Veralto's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$97.60, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Veralto. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Veralto going out to 2026, and you can see them free on our platform here..
However, before you get too enthused, we've discovered 1 warning sign for Veralto that you should be aware of.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
