Veralto Q1 Revenues & Earnings Beat Estimates, Increase Y/Y

Core Insights - Veralto Corporation (VLTO) reported strong first-quarter 2025 results, with earnings and revenues exceeding the Zacks Consensus Estimate [1] - The stock has underperformed compared to the industry and the Zacks S&P 500 Composite over the past year [2] Financial Performance - Adjusted earnings per share for the quarter were 95 cents, surpassing the consensus by 9.2% and increasing 13.1% year over year [1] - Total revenues reached $1.33 billion, beating the consensus by 3.8$794 million, remaining flat year over year and exceeding the estimate of 772 million [3] - The Product, Quality & Innovation segment saw revenues of 538 million, an 8.3% year-over-year increase, outperforming the projection of $512.4 million [3] - Adjusted EBITDA was$343 million, reflecting an 8.9% rise from the year-ago quarter, with an adjusted operating EBITDA margin improvement of 50 basis points to 25.8% [3] Cash Flow and Balance Sheet - Veralto ended the quarter with cash and cash equivalents of $1.24 billion, up from$827 million in the prior year [4] - Long-term debt was reported at $2.63 million, slightly up from$2.62 billion at the end of the previous quarter [4] - The company generated $157 million in cash from operating activities, with capital expenditures of$15 million, resulting in free cash flow of $142 million [4] Future Guidance - For Q2 2025, Veralto anticipates revenue growth in the low-to-mid single-digit range year over year, with adjusted diluted earnings per share projected between 84 cents and 88 cents, below the Zacks Consensus Estimate of 92 cents [5] - For the full year 2025, the company reaffirms its adjusted earnings per share guidance of$3.60 to $3.70, with a midpoint of$3.65, slightly below the current year's Zacks Consensus Estimate of $3.66 [6] - The outlook assumes core sales growth in the low-to-mid single-digit range and adjusted operating profit margins to expand by up to 50 basis points year over year or remain flat [6]