The annual results for Vontier Corporation (NYSE:VNT) were released last week, making it a good time to revisit its performance. Vontier reported US$3.0b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$2.75 beat expectations, being 6.2% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Vontier after the latest results.
See our latest analysis for Vontier
Taking into account the latest results, Vontier's nine analysts currently expect revenues in 2025 to be US$3.03b, approximately in line with the last 12 months. Statutory earnings per share are forecast to reduce 3.5% to US$2.74 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$3.07b and earnings per share (EPS) of US$2.78 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
The analysts reconfirmed their price target of US$44.42, showing that the business is executing well and in line with expectations. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Vontier, with the most bullish analyst valuing it at US$48.00 and the most bearish at US$42.00 per share. This is a very narrow spread of estimates, implying either that Vontier is an easy company to value, or - more likely - the analysts are relying heavily on some key assumptions.
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. We would highlight that Vontier's revenue growth is expected to slow, with the forecast 1.7% annualised growth rate until the end of 2025 being well below the historical 3.0% p.a. growth over the last five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 7.3% annually. Factoring in the forecast slowdown in growth, it seems obvious that Vontier is also expected to grow slower than other industry participants.
The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share 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$44.42, with the latest estimates not enough to have an impact on their price targets.
With that in mind, we wouldn't be too quick to come to a conclusion on Vontier. Long-term earnings power is much more important than next year's profits. We have estimates - from multiple Vontier analysts - going out to 2027, and you can see them free on our platform here.
And what about risks? Every company has them, and we've spotted 1 warning sign for Vontier you should know about.
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