Data center products and services company Vertiv (NYSE: VRT) will be announcing earnings results this Wednesday before the bell. Here’s what to look for.
Vertiv met analysts’ revenue expectations last quarter, reporting revenues of $2.65 billion, up 30.1% year on year. It was a satisfactory quarter for the company, with full-year EPS guidance exceeding analysts’ expectations but a miss of analysts’ organic revenue estimates.
Is Vertiv a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Vertiv’s revenue to grow 28.5% year on year, slowing from the 35.1% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Vertiv rarely misses Wall Street’s revenue estimates.
Looking at Vertiv’s peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Allegion delivered year-on-year revenue growth of 12.7%, beating analysts’ expectations by 3.1%, and Sanmina reported revenues up 69.7%, topping estimates by 1.8%. Allegion traded up 9.6% following the results.
Read our full analysis of Allegion’s results here and Sanmina’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the electrical systems stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 3.3% on average over the last month. Vertiv is down 7.3% during the same time and is heading into earnings with an average analyst price target of $376.15 (compared to the current share price of $284.50).
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