Veralto, a leading global provider of essential water and product quality solutions, has announced its first quarter results and updated financial projections for 2024. The Company experienced positive year-over-year core sales growth primarily driven by the industrial sector’s strength in its Water Quality segment, along with strategic price adjustments. Veralto achieved significant operating margin expansion and substantial earnings growth.
The Company projects low-single-digit non-GAAP core sales growth for the second quarter of 2024, with an adjusted operating profit margin of approximately 23% and adjusted diluted earnings per share ranging from $0.27 to $0.29. For the full year 2024, Veralto anticipates continued low-single-digit non-GAAP core sales growth and an adjusted operating profit margin expansion of 50 to 75 basis points year-over-year. Additionally, Veralto increased its target for adjusted diluted earnings per share to a range of $1.13 to $1.17, surpassing its previous estimate of $1.10 to $1.15 per share. The Company also raised its projected free cash flow conversion ratio to 100% to 110%, an increase from its earlier guidance of approximately 100%.
Veralto’s President and Chief Executive Officer, Gregory Honeycutt, highlighted the Company’s continuous improvement approach and commitment to delivering on commitments. He noted the positive growth drivers in industrial markets, especially in the Water Quality segment, and steady demand from municipalities. Honeycutt also acknowledged modest signs of recovery in consumer-packaged goods markets within the Product Quality and Innovation segment.
Veralto’s financial performance showcases the Company’s focus on commercial excellence, operational efficiency, and prudent capital allocation to maximize shareholder value. The Company remains dedicated to safeguarding the world’s most vital resources and delivering sustainable long-term value.
