Vontier Corporation Just Beat Revenue Estimates By 5.3%

As you might know, Vontier Corporation (NYSE:VNT) recently reported its second-quarter numbers. It was a workmanlike result, with revenues of US$774m coming in 5.3% ahead of expectations, and statutory earnings per share of US$0.62, in line with analyst appraisals. 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. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, Vontier's eight analysts currently expect revenues in 2025 to be US$3.04b, approximately in line with the last 12 months. Statutory earnings per share are forecast to dip 2.7% to US$2.62 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$3.02b and earnings per share (EPS) of US$2.64 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.

Check out our latest analysis for Vontier

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.7% to US$46.75. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Vontier at US$51.00 per share, while the most bearish prices it at US$40.00. 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.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We would highlight that revenue is expected to reverse, with a forecast 0.4% annualised decline to the end of 2025. That is a notable change from historical growth of 2.2% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 8.0% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Vontier is expected to lag the wider industry.

The Bottom Line

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. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Vontier's revenue is expected to perform worse than the wider industry. We note an upgrade to the price target, suggesting that the analysts believes the intrinsic value of the business is likely to improve over time.

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. At Simply Wall St, we have a full range of analyst estimates for Vontier going out to 2027, and you can see them free on our platform here..

It is also worth noting that we have found 1 warning sign for Vontier that you need to take into consideration.

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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.