Vertiv Analysts Raise Their Forecasts Following Strong Earnings

Vertiv Holdings Co VRT reported upbeat first-quarter financial results and raised its 2024 guidance on Wednesday.

Net sales rose 8% Y/Y to $1.64 billion, beating the consensus of $1.62 billion. Organic orders (excluding foreign exchange) rose 60% Y/Y, led by strong underlying market demand benefiting from the ramp-up of AI deployments. Adjusted EPS stood at 43 cents, beating the consensus of 36 cents, according to data from Benzinga Pro.

Giordano Albertazzi, Chief Executive Officer, said, "We are seeing order patterns with longer lead times based on customer build schedules, largely in 2025 and beyond, suggesting AI is starting to scale. Though still in its early stages, AI is quickly becoming a pervasive theme across our end markets."

For FY24, Vertiv raised guidance for revenue to $7.54 billion – $7.69 billion (from $7.515 billion-$7.655 billion earlier) vs. consensus of $7.63 billion and adjusted EPS to $2.29-$2.35 (from $2.20-$2.26 earlier) vs. consensus of $2.30. For the second quarter, Vertiv said it expects revenue of $1.90 billion-$1.95 billion (vs. $1.90 billion estimate) and adj. EPS of $0.53-$0.57 (vs. consensus of $0.55).

Vertiv Holdings shares rose 6.8% to close at $84.57 on Wednesday.

These analysts made changes to their price targets on Vertiv following earnings announcement.

• Oppenheimer increased the price target on Vertiv from $96 to $98. Oppenheimer analyst Noah Kaye maintained an Outperform rating.
• JP Morgan boosted the price target on Vertiv from $95 to $100. JP Morgan analyst Stephen Tusa maintained an Overweight rating.

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