Data center products and services company Vertiv (NYSE: VRT) will be reporting earnings this Wednesday before the bell. Here’s what to expect.
Vertiv beat analysts’ revenue expectations by 5.2% last quarter, reporting revenues of $2.04 billion, up 24.2% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ organic revenue estimates and full-year revenue guidance exceeding analysts’ expectations.
Is Vertiv a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Vertiv’s revenue to grow 20.7% year on year to $2.36 billion, improving from the 12.6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.84 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vertiv has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Vertiv’s peers in the electrical systems segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Acuity Brands delivered year-on-year revenue growth of 21.7%, beating analysts’ expectations by 3.1%, and Allegion reported revenues up 5.8%, topping estimates by 1.5%. Acuity Brands traded up 5.8% following the results while Allegion was also up 7.2%.
Read our full analysis of Acuity Brands’s results here and Allegion’s results here.
There has been positive sentiment among investors in the electrical systems segment, with share prices up 6.5% on average over the last month. Vertiv is up 11.7% during the same time and is heading into earnings with an average analyst price target of $127.76 (compared to the current share price of $143.40).
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