Veralto (VLTO) Down 5.6% Since Last Earnings Report: Can It Rebound?

A month has gone by since the last earnings report for Veralto (VLTO). Shares have lost about 5.6% in that time frame, underperforming the S&P 500.But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Veralto due for a breakout? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent drivers for Veralto Corporation before we dive into how investors and analysts have reacted as of late.VLTO Beats Q1 Earnings EstimatesVeralto reported impressive first-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate.VLTO’s adjusted earnings per share (EPS) of $1.07 beat the consensus mark of $1.02 and rose 12.6% year over year. Total revenues came in at $1.42 billion, surpassing the consensus estimate of $1.40 billion and increasing 6.8% from the year-ago quarter. Normal 0 false false false false EN-US X-NONE X-NONE /* Style Definitions */ table.MsoNormalTable{mso-style-name:"Table Normal";mso-tstyle-rowband-size:0;mso-tstyle-colband-size:0;mso-style-noshow:yes;mso-style-priority:99;mso-style-parent:"";mso-padding-alt:0in 5.4pt 0in 5.4pt;mso-para-margin-top:0in;mso-para-margin-right:0in;mso-para-margin-bottom:8.0pt;mso-para-margin-left:0in;line-height:115%;mso-pagination:widow-orphan;font-size:12.0pt;font-family:"Calibri",sans-serif;mso-ascii-font-family:Calibri;mso-ascii-theme-font:minor-latin;mso-hansi-font-family:Calibri;mso-hansi-theme-font:minor-latin;mso-bidi-font-family:"Times New Roman";mso-bidi-theme-font:minor-bidi;mso-font-kerning:1.0pt;mso-ligatures:standardcontextual;}Quarterly Details of VeraltoRevenues from the Water Quality segment were $874 billion, increasing 10.1% from the year-ago reported figure. Product Quality and Innovation revenues in the first quarter of 2026 grew 1.7% to $548 million.Operating profit was $338 million, increasing 5% on a year-over-year basis. The adjusted operating profit margin was 25.1%, up 10 basis points from the year-ago reported figure.Balance Sheet & Cash Flow FiguresVeralto exited the first quarter of 2026 with cash and cash equivalents of $1.43 billion compared with $1.23 billion in the first quarter of 2025. Net debt was $1.2 billion compared with $1.3 billion in the year-ago quarter.VLTO generated $182 million in cash from operating activities in the quarter. Capital expenditure was $12 million. Free cash flow was $170 million.VLTO’s Q2 & 2026 OutlookFor second-quarter 2026, management expects core sales growth of 3%-4% year over year. Adjusted EPS is expected to be between 96 cents and $1.00.For 2026, the company projects core sales growth to be in the range of 3.0% to 4.5%. Adjusted EPS is expected to be between $4.20 and $4.28.How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.VGM ScoresCurrently, Veralto has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Veralto has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>This article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks