Stock Analysis

Veralto (NYSE:VLTO) Q1 2025 Earnings Increase With Sales At US$1,332 Million

NYSE:VLTO
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Veralto (NYSE:VLTO) recently announced its Q1 2025 earnings, showcasing growth with sales climbing to USD 1,332 million and net income rising to USD 225 million from the prior year. These positive financial results likely provided momentum for the company's stock, which rose by 11.86% over the last month. While the broader market was up 12% over the past 12 months, Veralto's performance aligned with this trend. The company's earnings announcement likely supported the upward movement in its stock price, adding weight to the generally positive market sentiment.

You should learn about the 2 weaknesses we've spotted with Veralto.

NYSE:VLTO Earnings Per Share Growth as at May 2025
NYSE:VLTO Earnings Per Share Growth as at May 2025

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The recent surge in Veralto's (NYSE: VLTO) stock following its Q1 2025 earnings reflects the company's strong performance, with sales reaching US$1.33 billion and net income climbing to US$225 million. This momentum has echoed recent strategic moves, such as the expansion through the Michigan factory and water quality acquisitions, potentially enhancing long-term resilience. Over the past twelve months, the stock has delivered a total return of 3.82%. However, it underperformed both the broader market, which increased 11.6%, and the US Commercial Services industry, which rose 14.8% during the same period.

The earnings announcement could signal future revenue and earnings improvements, considering analysts' projections of 5.3% annual revenue growth and margin expansion to 17.3% by 2028. Upcoming catalysts, particularly in the water quality segment, could further drive growth. Nevertheless, the latest price of US$95.36 still reflects a 12.6% gap from the consensus price target of US$109.15, suggesting potential market undervaluation. Investors should weigh these growth prospects against current market and industry dynamics to form balanced expectations.

Gain insights into Veralto's past trends and performance with our report on the company's historical track record.

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.

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