Vertiv Stock Exceeds Q3 Expectations, Falls Short on Sales Forecast

Vertiv (VRT), a company that specializes in digital infrastructure technology for data centers and communication networks, exceeded Wall Street’s expectations for the third quarter but provided mixed guidance for the current period, causing VRT stock to fall in early trading.

The Westerville, Ohio-based company reported an adjusted earnings of 76 cents per share on sales of $2.07 billion in the September quarter. Analysts had anticipated Vertiv earnings of 69 cents per share on sales of $1.98 billion, according to FactSet. Vertiv’s earnings increased by 46% year-over-year, while sales saw a 19% rise.

For the current quarter, Vertiv anticipates earning an adjusted 82 cents per share on sales of $2.14 billion, based on the midpoint of its guidance. However, Wall Street had predicted fourth-quarter earnings of 75 cents per share on sales of $2.16 billion. In the fourth quarter of the previous year, Vertiv earned 56 cents per share on sales of $1.87 billion.

Vertiv offers infrastructure technology for data centers, including battery energy storage systems, thermal management solutions, and data center racks. The company has collaborated with AI chipmakers such as Nvidia (NVDA) to design artificial intelligence data centers.

VRT Stock Is On Two IBD Lists

Vertiv’s Chief Executive, Giordano Albertazzi, commented in a news release, “There are clear indications of an acceleration in AI development that is truly encouraging, and which is driving demand across our entire AI-enabling portfolio of power, thermal, IT systems, infrastructure solutions, and services.” He also noted, “We are very encouraged by the acceleration of liquid cooling revenue, which is a visible contributor to our third-quarter results, despite a yet immature market.”

In premarket trading, VRT stock declined by 7.2% to 104.40.

VRT stock is included in two IBD lists: IBD 50 and Leaderboard.

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