In this article:
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%.
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.