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Veralto (VLTO) Up 2% Since Last Earnings Report: Can It Continue?
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It has been about a month since the last earnings report for Veralto (VLTO - Free Report) . Shares have added about 2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Veralto due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Veralto Corporation before we dive into how investors and analysts have reacted as of late.
VLTO Beats Q2 Earnings Estimates
Veralto reported impressive second-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate.
Quarterly adjusted earnings of 93 cents per share surpassed the consensus mark by 4.5% and increased 9.4% year over year. Total revenues of $1.37 billion beat the consensus estimate by a 2.1% margin and rose 6.4% from the year-ago quarter.
VLTO’s Quarterly Numbers in Detail
The Water Quality segment recorded revenues of $825 million, which grew 6.2% year over year. The Product, Quality & Innovation segment’s top line gained 6.9% year over year to $546 million.
Adjusted EBITDA was $285 million, a 5.6% rise from the year-ago quarter. The adjusted operating EBITDA margin improved 17 basis points to 20.79% from the year-ago quarter.
Cash Flow of VLTO
Veralto exited the second quarter with a cash and cash equivalent balance of $1.56 billion compared with the December-end quarter’s $1.1 billion. Long-term debt at the end of the quarter was $2.67 million compared with $2.60 billion at the end of the fourth quarter of 2024.
VLTO generated $496 million in cash from operating activities in the reported quarter, while capital expenditure was $16 million.
VLTO’s Q3 & 2025 Guidance
For the third quarter of 2025, Veralto expects revenues to grow in the mid-single-digits year-over-year and projects adjusted diluted earnings per share to range from 91 cents to 95 cents.
For full-year 2025, the company has raised its adjusted earnings per share guidance of $3.72 to $3.80, up from its prior guidance range of $3.60-$3.70. VLTO targets a free cash flow conversion rate of 90% to 100%. The company also increased its full-year core sales growth assumption to mid-single-digits, up from its prior assumption of low to mid-single-digits. Adjusted operating profit margins will expand by up to 50 basis points year over year or remain flat.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Veralto has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Veralto has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Veralto is part of the Zacks Waste Removal Services industry. Over the past month, Pentair plc (PNR - Free Report) , a stock from the same industry, has gained 6.7%. The company reported its results for the quarter ended June 2025 more than a month ago.
Pentair reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of +2.2%. EPS of $1.39 for the same period compares with $1.22 a year ago.
For the current quarter, Pentair is expected to post earnings of $1.18 per share, indicating a change of +8.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Pentair. Also, the stock has a VGM Score of B.
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Veralto (VLTO) Up 2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for Veralto (VLTO - Free Report) . Shares have added about 2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Veralto due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Veralto Corporation before we dive into how investors and analysts have reacted as of late.
VLTO Beats Q2 Earnings Estimates
Veralto reported impressive second-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate.
Quarterly adjusted earnings of 93 cents per share surpassed the consensus mark by 4.5% and increased 9.4% year over year. Total revenues of $1.37 billion beat the consensus estimate by a 2.1% margin and rose 6.4% from the year-ago quarter.
VLTO’s Quarterly Numbers in Detail
The Water Quality segment recorded revenues of $825 million, which grew 6.2% year over year. The Product, Quality & Innovation segment’s top line gained 6.9% year over year to $546 million.
Adjusted EBITDA was $285 million, a 5.6% rise from the year-ago quarter. The adjusted operating EBITDA margin improved 17 basis points to 20.79% from the year-ago quarter.
Cash Flow of VLTO
Veralto exited the second quarter with a cash and cash equivalent balance of $1.56 billion compared with the December-end quarter’s $1.1 billion. Long-term debt at the end of the quarter was $2.67 million compared with $2.60 billion at the end of the fourth quarter of 2024.
VLTO generated $496 million in cash from operating activities in the reported quarter, while capital expenditure was $16 million.
VLTO’s Q3 & 2025 Guidance
For the third quarter of 2025, Veralto expects revenues to grow in the mid-single-digits year-over-year and projects adjusted diluted earnings per share to range from 91 cents to 95 cents.
For full-year 2025, the company has raised its adjusted earnings per share guidance of $3.72 to $3.80, up from its prior guidance range of $3.60-$3.70. VLTO targets a free cash flow conversion rate of 90% to 100%. The company also increased its full-year core sales growth assumption to mid-single-digits, up from its prior assumption of low to mid-single-digits. Adjusted operating profit margins will expand by up to 50 basis points year over year or remain flat.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a upward trend in fresh estimates.
VGM Scores
Currently, Veralto has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Veralto has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Performance of an Industry Player
Veralto is part of the Zacks Waste Removal Services industry. Over the past month, Pentair plc (PNR - Free Report) , a stock from the same industry, has gained 6.7%. The company reported its results for the quarter ended June 2025 more than a month ago.
Pentair reported revenues of $1.12 billion in the last reported quarter, representing a year-over-year change of +2.2%. EPS of $1.39 for the same period compares with $1.22 a year ago.
For the current quarter, Pentair is expected to post earnings of $1.18 per share, indicating a change of +8.3% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.2% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Pentair. Also, the stock has a VGM Score of B.