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Is a Beat Likely for Vertiv Holdings (VRT) in Q1 Earnings?

Vertiv Holdings VRT is likely to beat expectations when it reports first-quarter 2024 results before market open on Apr 24.

For the quarter, the company anticipates revenues in the band of $1.575-$1.625 billion. The Zacks Consensus Estimate for revenues is pegged at $1.64 billion, which implies growth of 7.6% from the figure reported in the year-ago quarter.

Non-GAAP earnings per share are envisioned in the band of 32-36 cents. The Zacks Consensus Estimate is pegged at 37 cents per share, which indicates an increase of 54.2% from the figure reported in the year-ago quarter.

The company’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 30.4%.

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Let’s see how things have shaped up for the upcoming announcement.

Vertiv Holdings Co. Price and EPS Surprise

Vertiv Holdings Co. price-eps-surprise | Vertiv Holdings Co. Quote

Factors at Play

Vertiv’s first-quarter results are likely to benefit from the robust demand for its hardware, software and analytics solutions. Sustained gains from pricing and sizable investments in all end markets, such as artificial intelligence and data centers, are likely to have driven VRT’s performance in the to-be-reported quarter.

A growing customer base, backed by the elevated demand for Vertiv’s cloud-based solutions amid the ongoing digitalizing trend, is expected to have contributed to the company’s first-quarter revenues. The to-be-reported quarter’s top line is likely to have experienced the impact of expanding its global footprint outside the Americas. It is worth mentioning that the Americas, the EMEA and the APAC represented 54.7%, 22.2% and 23.1% of the total revenues, respectively, in the fourth quarter.

The critical digital infrastructure and continuity solutions provider is likely to have witnessed improved operational execution and supply-chain flow in the quarter to be reported. Nevertheless, VRT’s considerable exposure to material, freight and labor inflation and persistent investments in research and development are expected to weigh on its bottom-line performance in the to-be-reported quarter.

Earnings Whispers

Our proven model predicts an earnings beat for Vertiv this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate (38 cents per share) and the Zacks Consensus Estimate (37 cents per share), is +1.24%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Zacks Rank: VRT sports a Zacks Rank #1.

Other Stocks With the Favorable Combination

Per our model, Meta Platforms META, Lam Research LRCX and Qualcomm QCOM also have the right combination of elements to post an earnings beat in their upcoming releases.

Meta Platforms carries a Zacks Rank #2 and has an Earnings ESP of +0.62%. The company is slated to report first-quarter 2024 results on Apr 24. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average surprise being 19.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Meta’s fourth-quarter earnings stands at $4.32 per share, which indicates a year-over-year increase of 63.6%. It is estimated to report revenues of $36.22 billion, which implies an increase of approximately 26.5% from the year-ago quarter.

Lam Research is slated to report third-quarter fiscal 2024 results on Apr 24. The company has a Zacks Rank #2 and an Earnings ESP of +0.26% at present. Lam Research’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 11.3%.

The Zacks Consensus Estimate for third-quarter earnings is pegged at $7.23 per share, which suggests an improvement from the year-ago quarter’s earnings of $6.99. Lam Research’s quarterly revenues are estimated to decline 4.3% to $3.70 billion.

Qualcomm carries a Zacks Rank #2 and has an Earnings ESP of +6.15%. The company is expected to report second-quarter fiscal 2024 results on May 1. Its bottom-line result surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while missing the same on one occasion, the average surprise being 5.9%.

The Zacks Consensus Estimate for Qualcomm’s second-quarter bottom line is pegged at earnings of $2.32 cents per share, which indicates an improvement of 7.9% from the year-ago quarter’s earnings of $2.15. The consensus mark for revenues stands at $9.32 billion, which calls for a year-over-year increase of 0.5%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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QUALCOMM Incorporated (QCOM) : Free Stock Analysis Report

Lam Research Corporation (LRCX) : Free Stock Analysis Report

Vertiv Holdings Co. (VRT) : Free Stock Analysis Report

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