Vertiv Holdings LLC (VRT) stock experienced a pre-market plunge of 5.88% on Wednesday, following the company's fourth-quarter 2024 earnings release and weaker-than-expected guidance for the first quarter of 2025.
While Vertiv reported better-than-expected Q4 2024 adjusted EPS of $0.99 and revenue of $2.346 billion, the company's pretax profit of $245.2 million fell significantly short of the IBES estimate of $387.2 million. This substantial miss in profitability appears to be a major factor contributing to the stock's pre-market decline.
Furthermore, Vertiv's outlook for the first quarter of 2025 disappointed investors. The company projected adjusted EPS in the range of $0.57 to $0.63, missing the FactSet estimate of $0.63. Additionally, Vertiv's Q1 2025 guidance for sales ($1.9 billion to $1.95 billion) and adjusted operating income ($315 million to $335 million) indicates a year-over-year decline compared to the same period last year, raising concerns about the company's near-term growth prospects.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.