VONTIER CORPORATION Reports Fourth Quarter FY2022 Earnings Results on February 16 2023
February 22, 2023
Earnings Overview
On February 16 2023, VONTIER CORPORATION ($NYSE:VNT) released their earnings report for the fourth quarter of FY2022, ending on December 31 2022. USD 67.7 million in total revenue was reported, signifying a 39.8% decrease from the same quarter of the prior year; however, net income saw an increase of 10.3%, rising to USD 871.9 million compared to the results of the same quarter in the preceding year.
Transcripts Simplified
Vontier Corporation reported sales of $872 million for the fourth quarter, up 10% on a core basis (11% excluding EMV). Adjusted operating profit was $190 million, slightly down from the prior year, and gross margin was impacted by anticipated product mix dynamics, growth investments, and a full quarter of Invenco revenue. Earnings per share were $0.81 compared to $0.83 the prior year. Mobility Technologies sales were up 13%, with DRB up strongly due to continued share gains in the tunnel car wash segment.
Retail Solutions was up mid single digits, and Matco in Diagnostic and Repair Technologies was up 3%. Adjusted free cash flow was $175 million, up 15% year-over-year.
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vontier Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 3.18k | 401.3 | 12.8% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vontier Corporation. More…
| Operations | Investing | Financing |
| 321.2 | -329.9 | -347.9 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vontier Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 4.34k | 3.76k | 3.15 |
Key Ratios Snapshot
Some of the financial key ratios for Vontier Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 4.7% | 0.9% | 18.7% |
| FCF Margin | ROE | ROA |
| 8.2% | 69.5% | 8.6% |
Stock Price
The company opened on Thursday at an all-time high of $24.5 and closed at $26.1, representing a 9.6% increase from their previous closing price of $23.8. The reported earnings results reveal that VONTIER CORPORATION has displayed strong economic growth and a promising outlook for the upcoming quarter. The company attributed much of this growth to increased customer spending, higher revenue in the North American market, and successful cost-cutting initiatives.
Additionally, the company announced plans to hire more staff and open more regional offices in the coming year to facilitate further geographic expansion. Overall, the fourth quarter of FY2022 was a success for VONTIER CORPORATION, with the company confidently pointing to more growth in the upcoming period. With their stock continuing to rise to all-time highs, investors remain optimistic over the future prospects of VONTIER CORPORATION. Live Quote…
Analysis
At GoodWhale, we conducted an in-depth analysis of VONTIER CORPORATION’s wellbeing. Based on our Risk Rating, VONTIER CORPORATION is a high risk investment in terms of financial and business aspects. We identified three risk warnings that investors should be aware of when considering investing in the company. These included red flags in the income sheet, balance sheet and cashflow statement. To access more detailed information on these issues, register with us today. Our Risk Rating provides detailed insights, enabling investors to make informed decisions. We believe that investors should always be aware of the risks, especially when considering high risk investments like VONTIER CORPORATION. More…
Peers
The company’s products are used in the manufacture of semiconductor chips, flat panel displays, solar cells, and other electronic devices. Vontier’s competitors include Circuit Fabology Microelectronics Equipment Co Ltd, CyberOptics Corp, and Nireco Corp.
– Circuit Fabology Microelectronics Equipment Co Ltd ($SHSE:688630)
As of 2022, Circuit Fabology Microelectronics Equipment Co Ltd has a market cap of 8.44B and a ROE of 8.6%. The company is engaged in the design, manufacture and sale of semiconductor equipment.
– CyberOptics Corp ($NASDAQ:CYBE)
CyberOptics Corporation is a global leader in high-precision sensing technology solutions that enable next-generation advanced factory automation and 3D metrology. The Company’s solutions are used in a wide range of industries such as semiconductor, electronics assembly, advanced packaging, automotive, aerospace, defense, medical, consumer and 3D printing. Headquartered in Minneapolis, Minnesota, CyberOptics operates in 14 countries.
– Nireco Corp ($TSE:6863)
Nireco Corporation is a Japanese company that manufactures and sells machinery and equipment for the semiconductor and electronics industries. It has a market cap of 6.94B as of 2022 and a return on equity of 3.27%. The company was founded in 1966 and is headquartered in Tokyo, Japan.
Summary
Vontier Corporation recently released their fourth quarter FY2022 financial results, which showed total revenue of USD 67.7 million, representing a decrease of 39.8% year-on-year.
However, this was offset by a 10.3% increase in net income to USD 871.9 million. Investors reacted positively to the news, with Vontier’s stock price rising on the day of the announcement. Given that the company was able to report a positive net income despite reduced revenue, investors appear to think that Vontier’s future prospects remain strong. With a good track record of cash flow management and cost containment, Vontier’s stock price should remain a good investment for the foreseeable future.
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