Yahoo Finance Vontier Corporation Just Recorded A 54% EPS Beat: Here's What Analysts Are Forecasting Next
Vontier Corporation (NYSE:VNT) shareholders are probably feeling a little disappointed, since its shares fell 4.3% to US$39.44 in the week after its latest first-quarter results. It looks like a credible result overall - although revenues of US$756m were what the analysts expected, Vontier surprised by delivering a (statutory) profit of US$0.88 per share, an impressive 54% above what was forecast. This is an important time for investors, as they can track a company's performance in its report, look at what experts are forecasting for next year, and see if there has been any change to expectations for the business. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
View our latest analysis for Vontier
Following last week's earnings report, Vontier's six analysts are forecasting 2024 revenues to be US$3.09b, approximately in line with the last 12 months. Statutory per-share earnings are expected to be US$2.84, roughly flat on the last 12 months. Before this earnings report, the analysts had been forecasting revenues of US$3.12b and earnings per share (EPS) of US$2.71 in 2024. So the consensus seems to have become somewhat more optimistic on Vontier's earnings potential following these results.
The consensus price target was unchanged at US$45.19, implying that the improved earnings outlook is not expected to have a long term impact on value creation for shareholders. 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$51.00 and the most bearish at US$38.00 per share. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Vontier's revenue growth is expected to slow, with the forecast 0.5% annualised growth rate until the end of 2024 being well below the historical 4.3% 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 6.1% annually. Factoring in the forecast slowdown in growth, it seems obvious that Vontier is also expected to grow slower than other industry participants.
The Bottom Line
The biggest takeaway for us is the consensus earnings per share upgrade, which suggests a clear improvement in sentiment around Vontier's earnings potential next year. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.
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 2026, and you can see them free on our platform here.
You still need to take note of risks, for example - Vontier has 1 warning sign we think you should be aware of.
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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.
