What's Going On With Vertiv Holdings Stock Today?

Vertiv Holdings VRT shares are trading higher despite the company reporting worse-than-expected fourth-quarter adjusted EPS and sales results.

What Happened: On Wednesday prior to market open, Vertiv reported fourth-quarter results that missed analyst estimates on both earnings and sales. Vertiv also provided guidance for first-quarter and full-year 2023.

The Details: Vertiv reported a quarterly earnings figure of $0.28 per share, missing the analyst consensus estimate of $0.31 per share. This represents a negative earnings surprise of 9.68% but is a significant increase from last year’s earnings of $0.04 per share.

The company reported record fourth-quarter sales of $1.65 billion, slightly missing analyst expectations of $1.68 billion. The number represents a 17.22% increase over sales of $1.41 billion during the same period last year.

Vertiv said it expects strong performance in 2023 despite ongoing economic uncertainty bolstered by a record fourth quarter and a strong backlog. The company expects first-quarter revenues in the range of $1.35 billion-$1.45 billion and adjusted earnings between $0.14-$0.20 per share.

For full-year 2023, Vertiv sees revenue in the range of $6.45 billion-$6.6 billion, and adjusted earnings in the range of $1.17-$1.27 per share.

Giordano Albertazzi, Vertiv's CEO, noted, "Supply chain pressures are easing, pricing continues to improve, and we have made steady progress in the Americas with operating margins in that segment rebounding to over 20% in the fourth quarter."

Vertiv brings together hardware, software, analytics and ongoing services to enable its customers' vital applications to run continuously, perform optimally and grow with their business needs.

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According to data from Benzinga Pro, Vertiv Holdings shares were up 6.91%, trading at $16.32 at the time of publication. The stock has a 52-week high of $21.19 and a 52-week low of $7.76.

Photo: courtesy of Vertiv.