Projected Revenue Outcomes
Vertiv Holdings, the digital infrastructure and continuity solutions juggernaut, is preparing to unveil its first-quarter 2024 financial report on April 24. The corporation anticipates a revenue range between $1.575 billion and $1.625 billion. Analysts’ consensus sits at $1.64 billion, signifying a stout uptick of 7.6% from the figures witnessed in the previous year’s corresponding quarter.
The projected Non-GAAP earnings per share hold steady in the interval of 32 to 36 cents. However, market expectations are more bullish at 37 cents per share, which would mark a hefty 54.2% surge compared to the prior-year quarter.
Notably, Vertiv Holdings has outpaced the Zacks Consensus Estimate in the past four quarters, boasting an average earnings surprise of 30.4%. Investors eagerly await to see if this impressive streak continues in the upcoming announcement.
As we delve deeper, let’s explore the factors shaping the narrative leading up to the pinnacle of the earnings reveal.
Vertiv Holdings Co. Brewing Success Story
The anticipated success in Vertiv’s first-quarter results stems from the escalating demand for its hardware, software, and analytics solutions. The relentless gains from pricing strategies and substantial investments across various domains such as artificial intelligence and data centers are expected to have propelled VRT’s performance in the quarter under review.
The burgeoning customer base, fueled by the heightened interest in Vertiv’s cloud-based solutions amidst the ongoing digital transformation wave, is believed to have significantly bolstered the company’s first-quarter revenues. This period likely witnessed the positive repercussions of expanding Vertiv’s global footprint beyond the Americas. It’s noteworthy that in the fourth quarter, the Americas contributed 54.7%, EMEA 22.2%, and APAC 23.1% to the total revenues.
While operational efficiency and supply chain enhancements may have bolstered Vertiv’s performance, challenges loom in the form of escalating material, freight, and labor costs, alongside sustained investments in research and development, which could exert pressure on the bottom-line in the latest quarter.
Earnings Speculations
Our analytical model suggests a probable earnings beat for Vertiv this quarter. The amalgamation of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) heightens the prospects of an earnings surprise, a situation mirrored in Vertiv’s case.
Earnings ESP: Standing at +1.24%, the Earnings ESP represents the variance between the Most Accurate Estimate (38 cents per share) and the Zacks Consensus Estimate (37 cents per share). Delve into our Earnings ESP Filter for precursory insights on stocks poised for a financial revelation.
Zacks Rank: Vertiv boasts a Zacks Rank #1.
Other Contenders Under the Radar
Per our analyses, other market players such as Meta Platforms, Lam Research, and Qualcomm are poised to deliver impressive performances in their forthcoming announcement.
Observing the landscape, Meta Platforms sports a Zacks Rank #2 and an Earnings ESP of +0.62%. As the company readies to disclose its first-quarter results on April 24, speculations are rife as its earnings have consistently surpassed estimates in the previous four quarters, showcasing an average surprise of 19.7%. Projections suggest earnings of $4.32 per share, translating to a 63.6% year-over-year surge. Furthermore, revenues are expected to reach $36.22 billion, indicating a robust 26.5% increase from the prior-year quarter.
Meanwhile, Lam Research is gearing up to reveal its third-quarter fiscal 2024 results on April 24. The company proudly holds a Zacks Rank #2 alongside an Earnings ESP of +0.26%. Lam Research has a track record of topping earnings projections in all four preceding quarters, averaging a 11.3% surprise.
Qualcomm, carrying a Zacks Rank #2 and an Earnings ESP of +6.15%, is anticipated to announce its second-quarter fiscal 2024 results on May 1. The company’s earnings have surpassed the Zacks Consensus Estimate in three of the previous four quarters while marginally missing estimates on one occasion, yielding an average surprise rate of 5.9%.
As the financial arena braces for an influx of earnings reports, it’s imperative to keep abreast of the latest developments through the comprehensive Zacks Earnings Calendar.
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Zacks Investment Research
The viewpoints and interpretations articulated herein are those of the author solo and do not necessarily mirror the stance of Nasdaq, Inc.
