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 -2.74% change in stock price 10 days leading up to the earnings, and a +3.80% change 10 days following the report. On the earnings day itself, the stock moves by +1.54%. 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
2.35B
25.79%
13.16%
Gross Margin
35.08%
2.54%
2.30%
Operating Margin
19.56%
24.51%
5.84%
Net Margin
6.26%
-49.80%
-26.53%
EPS
0.38
-35.59%
-17.39%
No Data Available
VRT Earnings Analysis
Vertiv Holdings Co Corporation (VRT.N) Earnings Conference Call
Positive
Adjusted EPS Surge: Adjusted EPS of $0.99 represents a 77% increase compared to the prior year, exceeding expectations of $0.82.
Strong Organic Sales Growth: Q4 organic sales growth reached 27%, with sales growth exceeding 20% in both Americas and APAC, and over 30% in EMEA.
Q4 Adjusted Operating Profit Growth: Adjusted operating profit for Q4 was $504 million, a 53% increase year-over-year, with an adjusted operating margin of 21.5%, up 380 basis points from the previous year.
Strong Cash Flow Performance: Adjusted free cash flow generation was $362 million in Q4, contributing to over $1.1 billion for the year, demonstrating strong cash flow performance.
Dividend Increase and Share Buyback: A 50% increase in the dividend was announced, alongside a $600 million share repurchase program, reflecting confidence in financial strength and capital deployment strategy.
Negative
EMEA Project Activity Decline: Weakness in EMEA: EMEA experienced a decline in project activity, with some projects shifting to 2025, indicating potential revenue delays and uncertainty in that region.
Foreign Exchange Impact: Foreign exchange headwinds: The company anticipates an estimated $125 million negative impact from foreign exchange fluctuations in 2025, which could affect overall profitability and sales growth.
China Economic Uncertainty: Cautious outlook for China: Despite growth in China, there remains broad economic uncertainty, which could hinder future performance in this key market.
Rising Operational Expenses: Increased operational expenses: Projected higher operating expenses in 2025 due to investments in growth capacity and R&D, which may pressure margins despite revenue growth.
Revised Sales Growth Projection: Lower organic sales growth projection: The full-year organic sales growth for 2025 is expected to be lower at 16% compared to previous estimates, reflecting a more conservative outlook amid market challenges.
VRT FAQs
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VRT Earning Call Sentiment
Vertiv Holdings Co (NYSE:VRT) Q4 2024 Earnings Call Transcript
VRT.N
3.66%Positive
The earnings call presents strong financial metrics with a 77% EPS increase and robust organic sales growth across all regions. The announcement of a partnership with NVIDIA and expansion in AI and liquid cooling are positive catalysts. Despite competitive pressures and regulatory issues, the optimistic guidance for 2025 and a significant dividend increase bolster investor confidence. The Q&A highlighted management's positive outlook for EMEA and AI opportunities. The combination of these factors suggests a positive stock price movement over the next two weeks.
