Water solutions firm Veralto's Q4 adjusted EPS beats estimates

Reuters02-04 05:39
Water solutions firm Veralto's Q4 adjusted EPS beats estimates

Overview

  • Water solutions firm's Q4 sales rose 3.8% yr/yr, meeting analyst expectations

  • Adjusted EPS for Q4 beat analyst estimates

  • Company announced $750 mln share repurchase program and 18% dividend increase

Outlook

  • Veralto expects Q1 2026 non-GAAP core sales growth flat to low-single digits

  • Company targets Q1 2026 adjusted EPS between $0.97 and $1.01

  • Veralto forecasts full-year 2026 adjusted EPS between $4.10 and $4.20

Result Drivers

  • ACQUISITION EXPANSION - Acquisition of In-Situ expanded water analytics portfolio into high growth environmental water markets

  • SHARE REPURCHASE PROGRAM - Established $750 mln share repurchase program and increased dividend by 18%

  • OPERATIONAL EFFICIENCY - VES-driven execution improved operating efficiency in dynamic macro-economic environment

Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q4 Sales

Meet

$1.40 bln

$1.40 bln (14 Analysts)

Q4 Adjusted EPS

Beat

$1.04

$0.98 (14 Analysts)

Q4 EPS

$1.01

Q4 Adjusted Net Income

Beat

$261 mln

$245.05 mln (11 Analysts)

Q4 Net Income

$254 mln

Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the environmental services & equipment peer group is "buy"

  • Wall Street's median 12-month price target for Veralto Corp is $113.50, about 11.8% above its February 2 closing price of $101.48

  • The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nPn58MQ03a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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