The chart below shows how NVT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, NVT sees a +2.80% change in stock price 10 days leading up to the earnings, and a +3.90% change 10 days following the report. On the earnings day itself, the stock moves by +0.59%. This data can give you a slight idea of what to expect for the next quarter's release.
Positive
Sales and Earnings Growth: Q4 had 9% reported sales growth, margin expansion, and adjusted EPS growth of 7%.
Sales and Earnings Growth: For the full year, nVent Electric plc had 13% reported sales growth and strong earnings growth, with adjusted EPS up 7%.
Free Cash Flow Growth: Generated $150 million of free cash flow in Q4, contributing to a total of $427 million for the full year, growing 20%.
New Product Launch Impact: Launched approximately 90 new products in 2024, contributing more than two points to sales growth.
Projected EPS and Sales Growth: Expecting 2025 adjusted EPS growth of 22% at the midpoint, with sales growth projected at approximately 9%.
Negative
Decline in Organic Sales: Organic sales were down 1% in Q4 2024, indicating a decline in underlying business performance despite overall sales growth.
Distribution Partner Sales Decline: Sales to key distribution partners were down more than expected as they managed their inventory positions, reflecting potential weakness in demand.
Residential Sales Decline: Commercial residential sales declined mid-single digits, highlighting ongoing softness in this segment.
North America Sales Decline: Organic sales in North America declined low to mid-single digits, suggesting challenges in the largest market for the company.
Operating Income Impact Factors: Adjusted operating income was impacted by higher investments and inflation of approximately $25 million, which could pressure future profitability.
nVent Electric plc (NYSE:NVT) Q4 2024 Earnings Call Transcript
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