RALEIGH, N.C. - Vontier Corporation (NYSE: VNT) disclosed that Costco Wholesale Corporation (NASDAQ:COST) will implement Vontier's Invenco by GVR payment solutions across 76 Canadian fueling locations starting in October 2024. This initiative aims to enhance customer satisfaction by providing maximum uptime and faster transaction speeds at Costco's high-volume fuel retail sites.
The deployment will feature Invenco's FlexPay 6 outdoor payment terminal with a 15-inch display and the iNFX microservices architecture, designed to ensure continuous operation through over-the-air software updates, heightened security, and compliance. The iNFX architecture also supports integration with a range of hardware and software, including third-party systems, and allows the payment terminals to operate independently, reducing the risk of system-wide failures.
Costco's decision to upgrade its payment technology is part of a broader strategy to improve the member experience by introducing new communication channels at the pump, including personalized media and loyalty programs. The collaboration with Invenco and GVR, who have a history of working together in the fueling space, reflects Costco's commitment to customer-centric innovation.
Mark Morelli, President & CEO of Vontier, expressed pride in supporting Costco's efforts to elevate their service for members. Karthik Ganapathi, President of Invenco by GVR, highlighted the partnership's role in driving advancements in the FlexPay 6 terminals, benefiting both companies and their customers.
The upcoming NACS Expo in October 2024 will showcase the capabilities of GVR and Invenco's distributed fuel control and payment systems, which are part of a suite of technologies Vontier offers to address the evolving needs of the mobility ecosystem.
This announcement is based on a press release statement from Vontier Corporation.
In other recent news, Vontier Corporation has been making strategic moves in the electric vehicle (EV) sector and financial markets. The company's portfolio entity, Driivz, a leading software supplier for EV charging operations, has opened its U.S. headquarters in Raleigh, North Carolina. This expansion is intended to support the U.S. EV charging infrastructure and facilitate Driivz's growth in North America.
Vontier also announced plans to invest over $500 million in sustainable mobility solutions over the next five years, and initiated a $100 million accelerated share repurchase plan. However, Argus has downgraded Vontier's stock rating from Buy to Hold due to a softened demand outlook.
In recent developments, Vontier reported a slight increase in core order growth and improved gross margins for Q2 2024, despite macroeconomic uncertainty and project delays. The company's business simplification program has already resulted in $12 million in savings this year. For the upcoming quarter, Vontier forecasts core growth between -2% and +2%, with earnings per share expected to range from $0.67 to $0.71. The company also anticipates annual revenue between $2.9 billion and $3 billion and earnings per share between $2.80 and $3.00.
InvestingPro Insights
As Vontier Corporation (NYSE: VNT) announces its partnership with Costco Wholesale Corporation, investors may find it beneficial to consider the latest financial metrics and analyst perspectives provided by InvestingPro. Vontier's market capitalization stands at approximately $4.96 billion, reflecting the company's scale in the payment solutions sector. A notable InvestingPro Tip highlights that Vontier is trading at a low P/E ratio of 12.36 relative to its near-term earnings growth, suggesting a potentially undervalued stock in comparison to future earnings potential.
Moreover, the company's commitment to innovation and customer satisfaction is mirrored in its financial performance, with a robust gross profit margin of 48.15% over the last twelve months as of Q2 2024. This indicates a strong ability to control costs and maintain profitability. Additionally, analysts predict the company will be profitable this year, as evidenced by a basic EPS (Continuing Operations) of $2.61, reinforcing the company's financial stability.
An InvestingPro Tip also points out that Vontier's stock RSI suggests it is in oversold territory, which could be an opportunity for investors considering entry points. The InvestingPro platform lists several additional tips for VNT, providing a more comprehensive analysis for investors seeking to make an informed decision.
These insights, alongside the strategic partnership with Costco, could signal a positive trajectory for Vontier as it continues to expand its payment solutions offerings within the fueling industry.
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