Valued at a market cap of almost $24.8 billion, Veralto Corporation (VLTO) provides water analytics, water treatment, marking and coding, and packaging and color services. The Waltham, Massachusetts-based company operates through two segments, which are Water Quality (WQ) and Product Quality & Innovation (PQI). It is expected to announce its fiscal Q4 earnings results on Tuesday, Feb. 4.
Ahead of this event, analysts project the essential technology solutions provider to report a profit of $0.88 per share, up nearly 1.2% from $0.87 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in the last four quarters. Its adjusted earnings of $0.89 per share in the previous quarter outpaced the consensus estimates by 3.5%.
For fiscal 2024, analysts expect Veralto to report an EPS of $3.48, up 9.1% from $3.19 in fiscal 2023.
Shares of VLTO have soared 31% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 21.8% rise and the Industrial Select Sector SPDR Fund’s (XLI) 16.9% return over the same time frame.
Shares of Veralto plunged 4.6% following its Q3 earnings release on Oct. 23, despite delivering revenues of $1.3 billion, which came in line with the consensus estimates and adjusted EPS of $0.89, which exceeded the forecasted figure by 3.5%. Moreover, the top-line grew 4.7% year-over-year, while the bottom-line improved 18.7% from the year-ago quarter. However, stagnant demand in China with no significant improvements expected in the near term and slightly below-than-expected water quality margins might have overshadowed the positives and led to its downward price movement.
Wall Street analysts are moderately optimistic about VLTO’s stock, with a "Moderate Buy" rating overall. Among 14 analysts covering the stock, seven recommend "Strong Buy," and the remaining seven indicate “Hold.” This configuration is slightly more bullish than three months ago, with six analysts suggesting a “Strong Buy.”
The average price target for Veralto is $115.13, which indicates a 15.2% potential upside from the current levels.
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