Vertiv's FQ4 earnings top estimates but March quarter guidance falls short; shares dip

Vertiv Holdings (NYSE: VRT) saw its shares tumble more than 6.5% in premarket trading Wednesday after the company’s outlook for FQ1 2024 missed consensus estimates.

For the fiscal Q4 2023, the data center infrastructure provider reported earnings per share (EPS) of $0.56, beating the estimated $0.53. Revenue came in at $1.87 billion, also below the projected $1.88 billion.

The company reported an adjusted operating margin of 17.7% for the quarter, surpassing the anticipated 16.8%.

Looking ahead to the first quarter of 2024, Vertiv anticipates EPS in the range of $0.32 to $0.36, which falls short of the consensus expectation of $0.37.

The firm also forecasts Q1 2024 revenue to be between $1.575 billion and $1.625 billion, while analysts estimated $1.622 billion.

As for its full-year outlook, Vertiv expects to generate between $800 million and $850 million in free cash flow, significantly above the $712.5 million anticipated by analysts.

Further, net sales for the year are forecasted to be between $7.52 billion and $7.66 billion, compared to analyst expectations of $7.55 billion.

“Vertiv delivered a strong fourth quarter, capping off a year of significant progress built on our unrelenting focus on operational execution, driving a high-performance culture and demonstrating financial strength underpinned by continued robust market demand for Vertiv’s innovative products and services,” said Giordano Albertazzi, Vertiv’s CEO.

“This strong performance positions us well for continued momentum in 2024 as we continue to grow, further enhance our operational excellence and build a cultural DNA across the organization to ensure our continued market leadership in a dynamic industry,” he added.

By Vahid Karaahmetovic

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