Vontier Delivers Better-Than-Expected Q2 Results; Street Stays Bullish

Vontier Corporation (VNT) reported strong Q2 results as both earnings and revenues surpassed the Street’s estimates on the back of robust top-line growth. Shares of the company rallied 2.5% on Friday.

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Vontier is an industrial technology company that offers critical technical equipment, components, software and services for manufacturing, repair and servicing in the mobility infrastructure industry.

Q2 revenues soared 35.8% year-on-year to $724.6 million and surpassed the consensus mark of $672.2 million. Adjusted earnings came in at $0.61 per share, up 69.4% from $0.36 per share in the year-ago quarter. Also, it beat the Street’s estimates of $0.55. (See Vontier stock charts on TipRanks)

The President and CEO of Vontier, Mark D. Morelli, said, “Our profitable growth initiatives are delivering ahead of plan, and we substantially accelerated our portfolio diversification strategy with our recent announcement to acquire DRB Systems, LLC. Our work continues; we remain committed to investing in our organic and inorganic opportunities, driving accelerated growth and creating value as we continue our transformation.”

For Q3, Vontier expects to report adjusted net earnings per share in the range of $0.71 to $0.74. Also, it anticipates adjusted net earnings per share to be in the range of $2.77 to $2.82 for the full year 2021.

Last month, Robert W. Baird analyst Robert Mason reiterated a Buy rating on the stock with a price target of $43, implying 28.7% upside potential.

Mason said, “We see potential over next 24-36 months, with VNT’s multi-year execution to plan, that ensuing compounding revenue/EPS growth could drive an upward re-rating of valuation multiple afforded VNT in keeping with a compounder peer group.”

Overall, the Street is bullish on the stock with a Strong Buy consensus based on 6 Buys and 2 Holds. The average Vontier price target of $43 implies 28.7% upside potential.