The chart below shows how VLTO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VLTO sees a -0.97% change in stock price 10 days leading up to the earnings, and a +3.57% change 10 days following the report. On the earnings day itself, the stock moves by +1.18%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Record Sales Growth: Total sales grew 3.4% year-over-year to just under $5.2 billion, marking an all-time high for the company.
Earnings Per Share Increase: Adjusted earnings per share grew 11% to $3.54 per share, exceeding initial guidance.
Strong Free Cash Flow: Free cash flow generation was strong at $263 million in the fourth quarter, representing 116% conversion of GAAP net income.
Water Quality Sales Growth: Water Quality segment achieved 3.9% core sales growth with an adjusted operating profit margin of 25%, setting an all-time high with annual sales over $3 billion.
Dividend Increase Announcement: The company approved a 22% increase in its quarterly dividend, reflecting a commitment to returning value to shareholders.
Negative
Sales Growth Slowdown: Total sales grew only 3.4% year-over-year, indicating a slowdown in growth compared to previous periods.
Disappointing Core Sales Growth: Core sales growth in high growth markets was disappointing at just 1.5%, reflecting weak demand in these regions.
Stable Sales Challenges: Sales in China remained stable at low levels, with no expected growth in 2025, highlighting ongoing challenges in this key market.
Currency Translation Impact: Currency translation presented a 2% headwind to total sales, negatively impacting revenue and adjusted operating profit by approximately $25 million.
Operating Profit Margin Stability: Adjusted operating profit margin was flat year-over-year at 23.8%, indicating a lack of improvement in operational efficiency despite increased investments.
Veralto Corporation (NYSE:VLTO) Q4 2024 Earnings Call Transcript
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