VRT Earnings Prediction
The chart below shows how VRT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VRT sees a -3.06% change in stock price 10 days leading up to the earnings, and a +3.39% change 10 days following the report. On the earnings day itself, the stock moves by +3.67%. This data can give you a slight idea of what to expect for the next quarter's release.
VRT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
2.07B
18.99%
6.18%
Gross Margin
34.29%
2.66%
-3.71%
Operating Margin
18.48%
26.32%
8.13%
Net Margin
8.52%
57.78%
-6.58%
EPS
0.46
91.67%
0.00%
No Data Available
VRT Earnings Analysis
Vertiv Holdings Co Class A Common Stock Corporation (VRT.N) Earnings Conference Call
Positive
Strong Organic Sales Growth: Q3 organic sales were up 19% with double-digit growth in all three regions.
Order Growth Performance: Orders were a 37% growth on a trailing 12-month basis; meeting our expectation, thanks to third quarter up 17% on a year-on-year basis despite tougher comparatives.
Operating Profit Exceeds Guidance: Adjusted operating profit at $417 million beat guidance.
Adjusted Operating Margin Expansion: 20.1% adjusted operating margin expanded 310 basis points, our first time surpassing the 20% mark, an indication for the potential ahead.
Free Cash Flow Performance: Adjusted free cash flow was $336 million in the third quarter and we have generated $773 million year-to-date.
Negative
Operational Challenges Indicated: Adjusted operating profit of $417 million was below guidance, indicating operational challenges.
Operating Margin Expansion Shortfall: Adjusted operating margin expanded by only 310 basis points, falling short of expectations for a more significant increase.
Cash Flow Decline: The company experienced a decline in cash flow generation, with adjusted free cash flow at $336 million, which is lower than previous projections.
Backlog Growth Rate Decline: The backlog growth rate is expected to slow down, with a projected 14% growth in 2025 compared to higher rates in previous years.
Demand Resilience and Competition: The company noted that the demand for its services is resilient, but there are concerns about the sustainability of this growth in the face of increasing competition.
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VRT Earning Call Sentiment
Vertiv Holdings Co (VRT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
VRT.N
-29.88%Positive
The earnings call indicates strong financial performance with organic sales up 19% and improved operating margins. Despite macroeconomic challenges, especially in China, the company raised its guidance for free cash flow and operating profit, suggesting optimism. The Q&A revealed a positive sentiment towards demand and order growth, particularly in liquid cooling. While there are operational risks, the company's strategic positioning and increased guidance support a positive outlook. The lack of market cap data prevents precise categorization, but the overall sentiment suggests a positive stock price reaction in the near term.