Vertiv (VRT) Eyes Fresh Highs After Q1 Report
Shares of Vertiv (VRT) are indicated to open at a fresh all-time high today after the company delivered a solid Q1 with terrific order flow and upgraded forward guidance.
Q1 revenue was $1.64 billion (+8%) vs. expectations of $1.62 billion, while adjusted operating income of $248.6 million (+42%) beat consensus of $218.3 million. Orders grew by 60% (big acceleration from 23% in Q4 2023), and management called out build schedules stretching into 2025 and beyond, suggesting AI investments are driving major, long-term upgrades in digital infrastructure.
Turing to Q2 guidance, the company sees revenue in a range of $1.90 - $1.95 billion vs. consensus of $1.90 billion and adjusted EPS of $0.53 - $0.57 vs. consensus of $0.55.
Full-year guidance was upgraded to revenue in a range of $7.54 - $7.69 billion vs. prior guidance of $7.52 - $7.66B and adjusted EPS $2.29 - $2.35 vs. prior $2.20 - $2.26.
The stock is rallying because these results and guidance are good, but more because it sounds like business will remain strong for a while given the order flow. Keep holding. HOLD
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