Water analytics and treatment company Veralto (NYSE: VLTO) will be reporting results this Thursday after the bell. Here’s what to look for.
Veralto beat analysts’ revenue expectations last quarter, reporting revenues of $1.47 billion, up 7.5% year on year. It was a very strong quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is Veralto a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Veralto’s revenue to grow 6.7% year on year, in line with the 6.8% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Veralto has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Veralto’s peers in the environmental and facilities services segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Waste Connections delivered year-on-year revenue growth of 7.3%, beating analysts’ expectations by 1.2%, and Waste Management reported revenues up 6.3%, topping estimates by 0.5%. Waste Connections traded up 9.9% following the results.
Read our full analysis of Waste Connections’s results here and Waste Management’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the environmental and facilities services stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.7% on average over the last month. Veralto is up 4.7% during the same time and is heading into earnings with an average analyst price target of $114 (compared to the current share price of $100.76).
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