Latest news with #TraceGains
Yahoo
13-05-2025
- Business
- Yahoo
VLTO Q1 Earnings Call: Outperformance Driven by Broad-Based Growth, Tariff Mitigation in Focus
Water analytics and treatment company Veralto (NYSE:VLTO) reported Q1 CY2025 results topping the market's revenue expectations , with sales up 6.9% year on year to $1.33 billion. On the other hand, next quarter's revenue guidance of $1.32 billion was less impressive, coming in 1.3% below analysts' estimates. Its non-GAAP profit of $0.95 per share was 9.4% above analysts' consensus estimates. Is now the time to buy VLTO? Find out in our full research report (it's free). Revenue: $1.33 billion vs analyst estimates of $1.28 billion (6.9% year-on-year growth, 4.1% beat) Adjusted EPS: $0.95 vs analyst estimates of $0.87 (9.4% beat) Adjusted EBITDA: $343 million vs analyst estimates of $320.6 million (25.8% margin, 7% beat) Revenue Guidance for Q2 CY2025 is $1.32 billion at the midpoint, below analyst estimates of $1.34 billion Management reiterated its full-year Adjusted EPS guidance of $3.65 at the midpoint Operating Margin: 24.2%, in line with the same quarter last year Free Cash Flow Margin: 10.7%, up from 8.2% in the same quarter last year Market Capitalization: $24.87 billion Veralto's first quarter results were propelled by strong execution across its core water analytics and product quality infrastructure (PQI) segments. Management attributed the growth to disciplined commercial strategies, successful new customer wins, and a broad-based increase in demand across geographies and end markets. CEO Jennifer Honeycutt highlighted that both recurring revenue streams and equipment sales contributed significantly, with the marking and coding business delivering its fourth consecutive quarter of year-over-year growth in both consumables and equipment. The company also benefited from operational improvements and recent acquisitions, including TraceGains, which is tracking in line with expectations. Looking forward, Veralto maintained its full-year adjusted EPS outlook, but next quarter's revenue guidance was described as cautious in light of shifting global trade and tariff dynamics. Management emphasized ongoing countermeasures to offset tariff risks, including strategic pricing, supply chain adjustments, and a new U.S. manufacturing facility to increase flexibility. CFO Sameer Ralhan acknowledged that while demand trends remain steady, the company is modeling a range of scenarios to address potential headwinds from tariffs and global market uncertainties. Veralto's management credited the quarter's performance to both strategic actions and favorable market conditions. The company's approach to mitigating external risks and driving organic growth was a key theme throughout the call. Water treatment and analytics momentum: In North America, strong demand for chemical and ultraviolet (UV) water treatment solutions drove growth, especially from industrial customers and municipalities investing in water reuse and conservation. PQI segment execution: The marking and coding business showed sustained momentum, marking its fourth straight quarter of growth in both consumables and equipment. This was aided by improved consumer packaged goods market trends and enhanced commercial execution. Acquisition integration and expansion: The integration of TraceGains is progressing as planned, supporting new customer opportunities, while the planned acquisition of AQUAFIDES will expand Veralto's UV water treatment capabilities in Europe. Tariff countermeasures and supply chain agility: Management outlined detailed actions to address new tariffs, including shifting manufacturing to the U.S., implementing targeted price increases and surcharges, and leveraging flexible sourcing strategies. The new Grand Rapids factory was opened four months ahead of schedule to support these efforts. Recurring revenue focus: Recurring revenue streams, particularly consumables and software, grew at high single-digit rates year over year, underscoring the importance of a stable sales base amid macroeconomic uncertainty. Management's outlook for the coming quarters is shaped by global trade uncertainties, tariff impacts, and the resilience of core end markets like water treatment and consumer goods. Tariff mitigation strategies: The company is executing a mix of pricing actions, supply chain shifts, and manufacturing footprint changes to offset an estimated 3.5% sales exposure from new tariffs. Management believes these measures will limit margin pressure and support profitability. Steady demand in essential markets: Veralto expects continued demand for water analytics and treatment solutions, driven by long-term trends like water scarcity and infrastructure investment. The essential nature of its products supports recurring sales and stable customer relationships. M&A pipeline and capital allocation: With a strong balance sheet, management maintains a bias toward mergers and acquisitions, seeking opportunities in both core segments to drive future growth while remaining disciplined on valuation and integration. Scott Davis (Emilios Research): Asked about the timeline and effectiveness of tariff mitigation; management detailed a combination of pricing actions and supply chain adaptation, noting full mitigation may take up to six months. Deane Dray (RBC Capital Markets): Inquired about price elasticity and customer risk from tariff-driven price increases; CEO Honeycutt explained that high switching costs and the essential role of Veralto's products support pricing power, especially in consumables. Mike Halloran (Baird): Sought clarification on seasonality and the cadence between Q1 and Q2; CFO Ralhan responded that business seasonality is minimal and guidance reflects cautious planning given macro uncertainty. John McNulty (BMO Capital Markets): Asked about surprise growth drivers in Q1; management attributed upside to stronger-than-expected European water segment growth and improved commercial execution, rather than any pull-forward effects. Nathan Jones (Stifel): Questioned whether tariffs create competitive advantages; Honeycutt emphasized Veralto's asset-light model and agility in shifting manufacturing and supply, positioning the company to capitalize on market dislocations. Over the next few quarters, the StockStory team will be monitoring (1) the effectiveness of Veralto's tariff mitigation strategies and how quickly margin stability is restored, (2) continued demand trends in core water treatment and PQI markets as macroeconomic conditions evolve, and (3) the pace and impact of new product introductions and acquisition integrations, particularly with AQUAFIDES. We will also watch for any changes in recurring revenue trends and updates on capital deployment priorities. Veralto currently trades at a forward P/E ratio of 27×. In the wake of earnings, is it a buy or sell? The answer lies in our free research report. The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Coin Geek
09-05-2025
- Business
- Coin Geek
Food industry progress stifled by outdated tech: report
Getting your Trinity Audio player ready... New research has raised alarm over the slow pace of emerging technology adoption in the food industry compared to other key sectors. According to the research by TraceGains, the global food and beverage sector is facing dire risks of falling behind in the digitization trend, given its reliance on outdated technologies. The research surveyed 165 executives in the food industry, with analysts highlighting an underwhelming appetite for next-gen tech. TraceGains' report says 69% of firms are dependent on manual systems for their operational process. Over a third of firms lean on fax and spreadsheets for day-to-day operations compared to their peers in other industries with similar market capitalizations. 'The clock is ticking for food and beverage brands plagued by outdated ERP software and slow-moving consulting models that no longer serve the needs of today's market,' said Paul Bradley, Senior Director of Product Marketing. Analysts at TraceGains note that legacy workflows in the food and beverage industry have remained unchanged for nearly three decades. The report notes that the slow pace of change causes companies to risk breaching regulatory compliance rules, negatively affecting productivity and efficiency. 82% of respondents are on increasing their investment in improving their internal processes with emerging technologies. The surveyed executives say improving internal production and efficiency is a key driver in integrating emerging technologies into their operations, while others are eyeing the cost benefits. However, the research notes that 60% of firms in the sector remain in the implementation phase. The research highlights the challenge of steep implementation costs and the complexities associated with emerging technologies. The lowest-hanging fruit for firms in the food industry keen to embrace digitization appears to be artificial intelligence (AI) systems for automation. On the other hand, some companies are adopting blockchain technology for its immutability and transparency perks for supply chain use cases. Rising use cases for emerging technologies A few pioneers, including countries, are exploring blockchain in the food and beverages sector. In the supply chain sector, firms are leaning on Web3 solutions to protect consumers from fake products, allowing consumers to track provenance. In Vietnam and Malaysia, companies are turning to blockchain to authenticate halal certificates. A handful of firms have launched non-fungible tokens (NFTs) to explore novel solutions to interact and engage with consumers. Digital payments are changing the landscape for law firms Meanwhile, a new report from U.K.-based legal technology company Legl has highlighted a growing trend among law firms and clients embracing digital payment solutions. Legl says clients are opting for digital payment solutions in droves, ditching the use of cash and bank transfers. Per the report, 66% of clients retaining the services of a lawyer are turning to online payment methods to settle their legal bills, a big jump since 2020. Dubbed the 2025 UK Midsize Law Firm Priorities Report, Legl's analyst says only 1 in 5 law firm clients rely on cash payments for legal services. Less than 20% of clients prefer bank transfers to settle bills, with cheques also recording a steep decline. Credit card usage is holding its own with a 46% dominance, but could see its market share reduce in the coming years. Legl notes that credit cards may lose their place to digital wallets, open banking, embedded payments, and other emerging payment trends in the coming years. Legl is pioneering its embedded payment functionalities following a partnership with Adyen to streamline payment for legal services. 'Using a portal, like the one Legl provides, is more secure and gives clients more peace of mind when sharing this kind of information,' said Burnett and Reid practice manager Helen Strachan. While clients enjoy the perks of digitization in payments, the report identifies a string of benefits for law firms. By moving away from traditional bank transfers, law firms are recovering scores of man-hours while shortening payment times for legal services. 'Clients started using payment links almost immediately, and our finance team found that many clients now pay more quickly than they would have otherwise,' said Julia Taylor, director of client services at Debenhams Ottaway. 'In fact, we've saved 60-70 hours across 600+ payments.' The report notes that digital payments will allow firms to access real-time analytics and data. There is a consensus that payments are likely to be settled earlier if invoices are submitted at the start of the week, a trend observed using digital payment systems. Finally, the integration of AI and blockchain-based functionalities is expected to help law firms achieve regulatory compliance. Digital payments are gathering significant steam Digital payments are set to record high growth in the coming years. According to a report, the vertical will process payment volumes exceeding $3.8 trillion in 2025, a significant leap from previous years. The research tips stablecoins and digital assets to make up a significant slice of the volume, with the U.S. said to lead the market. However, the Asia Pacific will challenge America's dominance with a strong push led by Hong Kong and Singapore. Watch | Tech of Tomorrow: Diving into the impact of tech in shaping the future title="YouTube video player" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen="">
Associated Press
15-04-2025
- Business
- Associated Press
TraceGains Closes Strong Q1, Doubling European Presence and Launching Industry-First AI Tech Amidst Recognition on 'FoodTech 500' List in Top Percentile
Source-to-Shelf Networked Ecosystem Provider Appoints European Regional Sales Director, Launches AI-Powered Compliance Solution and Tops 'FoodTech 500' List WESTMINSTER, Colo., April 15, 2025 /PRNewswire/ -- TraceGains, the leading provider of compliance, quality, and innovation solutions for the food and beverage (F&B) industry, today announced it has outperformed in Q1 across multiple areas including its leadership team, global presence, technology innovation and business performance. TraceGains' string of accomplishments includes: the appointment of Michelle Henry as Regional Sales Director to oversee growth in Germany, Austria, and Switzerland (DACH market), recognition as #31 on the global 2024 FoodTech 500 list, a new AI-powered Intelligent Document Processing (IDP) solution and record-breaking attendance at its annual Together conference. Michelle joins TraceGains from Esko, a Veralto company and global provider of integrated software and hardware solutions that accelerate the go-to-market process of packaged consumer products. She previously held the role of Sales Manager for EMEA Brands. At TraceGains, she will focus on new hires in Europe, rapidly expanding regional sales coverage, and scaling European revenues for TraceGains and Esko's integrated source to shelf solution for unified product and packaging innovation. 'With the power of Veralto behind us, we are fast-tracking market expansion and growth to help global F&B brands manage today's supply chain challenges and regulatory nuances,' said Gary Iles, SVP of Marketing and Business Development at TraceGains. 'We're fortunate to have Michelle's leadership to accelerate our vision of helping food and beverage brands solve real-world challenges using the most advanced technology available such as AI and creating a source to shelf ecosystem that help brands remain agile amidst unforeseen economic challenges that may lie ahead.' 'Joining the TraceGains team is an amazing opportunity to build on the company's rapid growth in Europe as global F&B brands look for integrated, end-to-end solutions to improve the integrity and resilience of their global supply chains,' said Michelle Henry. 'Alongside the TraceGains team, I look forward to helping European F&B brands ensure product safety, regulatory compliance and sustainability while achieving their business goals.' Following its largest ever annual Together conference drawing 3,200 registrants, the company unveiled Intelligent Document Processing – a vertically tailored AI-powered solution optimized for the industry built on OpenAI and enhanced with a proprietary knowledge layer derived from decades of contextual F&B data unique to TraceGains. The solution streamlines Certificate of Analysis (COA) processing, replacing manual 'stare and compare' methods to ensure a product's compliance in terms of quality, performance, and safety. In March 2025, TraceGains was also recognized by ForwardFooding as #31 on the global 2024 FoodTech 500 list, which highlights companies that are acting as a force of good for creating a brighter future of food. With over 1,400 applicants from 50 countries, TraceGains ranks in the top 2% of candidates. For more information, please visit About TraceGains Founded in 2008, TraceGains has revolutionized the food and beverage industry with the first Source-to-Shelf networked ecosystem. By digitizing processes and insights using advanced Artificial Intelligence, TraceGains provides comprehensive solutions for compliance, nutritional calculation and labeling, new product development, environmental, social, and governance, and packaging in collaboration with Esko and other Veralto companies. Our clients capitalize on these tools to navigate the complexities of the global food and beverage industry, ensuring safer, compliant products reach customers faster and at reduced costs, thereby creating a competitive edge in their market launches. Trusted by over 1,500 global clients, including more than half of the top 100 food and beverage manufacturers, the TraceGains network connects brands through a vast global ecosystem of 90,000 supplier locations and over 600,000 ingredients and products. View original content to download multimedia: SOURCE TraceGains
