NYSE$VRT

Vertiv Holdings Co · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Vertiv's Q1 2022 earnings exceeded guidance with a net sales increase of 5.3% and orders growth of 34%.

Vertiv reported strong first quarter 2022 results, exceeding guidance with a 5.3% increase in net sales and a 34% growth in orders. The company's backlog reached a record-high of $4.1 billion. However, operating profit was negatively impacted by inflation and supply chain constraints.

  • Net sales increased by 5.3% compared to the prior year, reaching $1,156 million.
  • Orders grew by 34% compared to the prior year, with a record-high backlog of $4.1 billion.
  • Operating loss was $45 million, while adjusted operating profit was $13 million, impacted by inflation and supply chain issues.
  • Pricing realization of $40 million exceeded forecast by $10 million.

Headline financials

Total Revenue

$1.16B

Previous: $1.1B+5.3%
EPS (adj)

-$0.08

Previous: $0.21-138.1%
Organic Orders Growth

34.0%

Previous: 19.5%+74.4%
Capital Expenditures

-$15.1M

Previous: -$16.8M+10.1%
Free Cash Flow

-$6.6M

Previous: $14.9M-144.3%
Net Income

$8.5M

Previous: $31.7M-73.2%
Operating Income

-$45.2M

Previous: $79.8M-156.6%
Gross Profit

$304M

Previous: $358M-15.2%
Cash & Equivalents

$289M

Previous: $677M-57.4%
Total Assets

$6.91B

Previous: $5.16B+33.9%
Stock-Based Comp

$6.6M

Previous: $5.6M+17.9%

Revenue & EPS history

Vertiv · Revenue · Quarterly

$1.16B

Q1 2022+5.3%vs Q1 2021
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Revenue by segment

Vertiv · $849M total across 1 segment · Q1 2022

  • Products
    $849M+0.6%

Forward guidance

Vertiv anticipates a strong second half of 2022, positioning the company well for 2023, with end-market demand remaining strong and pricing accelerating significantly as the year progresses. Supply chain and inflationary headwinds are expected to persist for the balance of 2022.

Tailwinds

  • Expect the impact of the aggressive pricing actions taken in late 2021 and early 2022 to continue to enhance profitability over subsequent quarters.
  • Encouraged by the pricing seen in new orders, which continue to grow strongly.
  • Confident in pricing plan for the remainder of the year.
  • On track to deliver strong second half 2022 results and meet full year commitments with consistently improving profitability going forward into 2023.
  • End-market demand continues to be strong.

Headwinds

  • Supply chain issues showed no improvement in the first quarter, and we expect continued challenges throughout 2022.
  • Inflation was favorable to first quarter guidance, we have included an additional $10 million for inflationary pressures for the full year given the uncertainty in global commodity and freight markets.
  • Second Quarter 2022 Operating profit (loss) GAAP $23.3 million
  • Second Half 2022 Operating profit (loss) GAAP $324.9 million
  • Full Year 2022 Operating profit (loss) GAAP $303.0

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.5%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+7.7%

Avg return

30 days after

56%

18 / 32 earnings

Positive

+30.0%

Q2 2023

Best reaction

-36.7%

Q4 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%+3.2%+4.8%
Q4 2025+24.5%+17.5%+29.7%
Q3 2025-2.0%+10.4%-8.6%
Q2 2025+1.0%-1.8%-10.6%
Q1 2025+8.5%+20.0%+45.0%
Q4 2024-9.7%-12.3%-29.0%
Q3 2024-2.2%+1.0%+24.6%
Q2 2024-16.0%-14.3%-13.7%
Q1 2024+14.1%+19.7%+34.1%
Q4 2023+1.4%+6.9%+33.0%
Q3 2023-10.7%-1.9%+9.4%
Q2 2023+30.0%+34.6%+50.3%
Q1 2023+18.5%+21.2%+61.4%
Q4 2022+7.9%+3.3%-14.2%
Q3 2022+4.7%+1.3%-2.8%
Q2 2022+11.9%+10.2%-4.8%
Q1 2022+10.6%+9.3%-0.9%
Q4 2021-36.7%-33.5%-34.3%
Q3 2021+6.9%+8.3%+7.2%
Q2 2021+1.7%+0.2%+2.2%
Q1 2021+0.7%-1.1%+7.5%
Q4 2020-6.3%-1.8%-10.2%
Q3 2020-1.8%-4.0%+12.2%
Q2 2020+8.0%+11.1%+5.9%
Q4 2019+3.4%+8.5%+31.5%
Q1 2020-0.9%-2.9%+30.1%
Q2 2019-16.4%-31.9%-13.7%
Q3 2019+0.0%-0.3%+1.0%
Q1 2019-0.3%-0.3%+0.1%
Q4 2018+0.2%+0.6%+0.7%
Q3 2018+0.5%+1.2%+1.3%
Q2 2018-0.1%-1.1%-1.6%

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