VERTIV HOLDINGS Reports Fourth Quarter Earnings Results for FY 2022 on February 22, 2023.

Earnings Overview

On February 22, 2023, VERTIV HOLDINGS ($NYSE:VRT) announced their financial results for the fourth quarter of the fiscal year ending December 31, 2022. The company recorded total revenue of USD 26.6 million, representing an increase of 20.9% compared to the same period of the previous year. Net income also rose 17.3% year-over-year to USD 1654.6 million.

Transcripts Simplified

Fourth quarter financial results were lower than expected, but showed marked improvement from a year ago. Net sales increased 17% from last year’s fourth quarter and were up 22% organically. Adjusted operating profit of $211 million was below guidance range and driven by lower-than-anticipated volume in China, cost overruns on several large projects, and unfavorable mix.

Pricing was partially offset by a $55 million headwind from material and freight inflation. Although challenging, the company is still excited about the acquisition.

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Vertiv Holdings. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Vertiv Holdings. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Vertiv Holdings. More…

Key Ratios Snapshot

Some of the financial key ratios for Vertiv Holdings are shown below. More…

Share Price

The company’s stock opened at $17.0 and closed at $15.5, up 1.7% from the previous day’s closing price of $15.3. Furthermore, the company reported a 6% increase in revenues compared to the same period last year, reaching $6 billion. Despite the pandemic-induced economic slowdown, VERTIV HOLDINGS was able to remain profitable and generate strong revenue growth. This can be attributed to their strategic investments in digital infrastructure and the adoption of innovative technologies.

The company also announced plans to expand their product and service portfolio in the coming months to capitalize on the growing demand for digital infrastructure solutions. Overall, VERTIV HOLDINGS reported positive fourth quarter financial results, which were driven by strong revenue growth and improved operational efficiency. As the company continues to invest in digital infrastructure and adopt innovative technologies, investors are optimistic that they will continue to see positive financial results in the coming quarters. Live Quote…

Analysis

As GoodWhale, we conducted an analysis of VERTIV HOLDINGS‘s wellbeing. Based on our Star Chart, VERTIV HOLDINGS is classified as ‘cheetah’, a type of company that has achieved high revenue or earnings growth but is considered less stable due to lower profitability. This suggests that investors willing to take on higher risk may be interested in investing in VERTIV HOLDINGS. We also determined that VERTIV HOLDINGS has an intermediate health score of 4/10. We considered its cashflows and debt and concluded that VERTIV HOLDINGS is likely to safely ride out any crisis without the risk of bankruptcy. Furthermore, VERTIV HOLDINGS is strong in growth, medium in dividend, profitability and weak in asset. This combination of attributes may attract investors with high risk tolerance, as they may expect a higher return on their investment. More…

Peers

The competition among Vertiv Holdings Co, Enedo PLC, Landis+Gyr Group AG, and Cyberpower Systems Inc is fierce. All four companies are vying for a share of the market for critical infrastructure solutions. Enedo PLC is a provider of critical infrastructure solutions. Landis+Gyr Group AG is a provider of critical infrastructure solutions. Cyberpower Systems Inc is a provider of critical infrastructure solutions.

– Enedo PLC ($LTS:0E96)

Enedo PLC is a clinical-stage biopharmaceutical company dedicated to the development of first-in-class therapies for the treatment of cancer. The company’s market cap is 17.11M as of 2022 and its ROE is -72.98%. Enedo’s lead candidate, ENED-150, is a targeted therapy that is currently being evaluated in a Phase 1 clinical trial in patients with solid tumors.

– Landis+Gyr Group AG ($LTS:0RTL)

The Landis+Gyr Group AG is a Swiss-based company that focuses on the development and production of products and solutions in the field of energy management. The company has a market capitalization of 1.58 billion as of 2022 and a return on equity of 4.42%. Landis+Gyr is a leading provider of advanced metering, data collection and communication systems for electric, gas and water utilities. The company’s products and solutions are used by utilities around the world to manage energy resources more efficiently, provide better customer service and reduce environmental impact.

– Cyberpower Systems Inc ($TWSE:3617)

Cyberpower Systems Inc is a publicly traded company with a market capitalization of $7.36 billion as of 2022. The company has a return on equity of 6.69%. Cyberpower Systems Inc is engaged in the design, manufacture, and marketing of power protection and power management products, including UPS systems, inverters, surge protectors, and batteries. The company also provides data center solutions, such as data center infrastructure management, server and storage virtualization, and cloud computing solutions.

Summary

VERTIV HOLDINGS had a strong fourth quarter of the fiscal year ending December 31, 2022, with total revenue increasing 20.9% year-over-year to USD 26.6 million and net income increasing 17.3% to USD 1654.6 million. This marks an impressive performance from the company and is indicative of strong growth prospects for investors in the coming year. The company’s strong performance is likely to continue as it expands its operations and strategic partnerships. Analysts recommend investors look into VERTIV HOLDINGS as a long-term investment with good potential for growth.