Veralto Corporation Beat Analyst Estimates: See What The Consensus Is Forecasting For Next Year

Simply Wall St.
27 Oct 2024

Last week, you might have seen that Veralto Corporation (NYSE:VLTO) released its quarterly result to the market. The early response was not positive, with shares down 8.4% to US$104 in the past week. The result was positive overall - although revenues of US$1.3b were in line with what the analysts predicted, Veralto surprised by delivering a statutory profit of US$0.88 per share, modestly greater than expected. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

See our latest analysis for Veralto

NYSE:VLTO Earnings and Revenue Growth October 27th 2024

Taking into account the latest results, the current consensus from Veralto's 14 analysts is for revenues of US$5.48b in 2025. This would reflect a reasonable 6.8% increase on its revenue over the past 12 months. Per-share earnings are expected to ascend 11% to US$3.63. Before this earnings report, the analysts had been forecasting revenues of US$5.48b and earnings per share (EPS) of US$3.63 in 2025. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$114. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic Veralto analyst has a price target of US$125 per share, while the most pessimistic values it at US$98.12. The narrow spread of estimates could suggest that the business' future is relatively easy to value, or thatthe analysts have a strong view on its prospects.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Veralto's rate of growth is expected to accelerate meaningfully, with the forecast 5.4% annualised revenue growth to the end of 2025 noticeably faster than its historical growth of 3.1% p.a. over the past three years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 6.6% annually. So it's clear that despite the acceleration in growth, Veralto is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at US$114, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At Simply Wall St, we have a full range of analyst estimates for Veralto going out to 2026, and you can see them free on our platform here..

Plus, you should also learn about the 1 warning sign we've spotted with Veralto .

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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