NYSE$VRT

Vertiv Holdings Co · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Vertiv's Q4 2021 performance was impacted by inflationary and supply chain challenges, but pricing actions were expected to drive strong second half of 2022.

Vertiv's Q4 2021 results were affected by inflation and supply chain issues, leading to an operating loss of $4 million, despite strong end-market demand and a 51% increase in orders. The company implemented significant pricing actions to improve profitability in the second half of 2022.

  • End-market demand remained strong with fourth quarter 2021 orders up 51% from last year’s fourth quarter and record-high Vertiv backlog of $3.2 billion.
  • Fourth quarter net sales growth of 8% and organic net sales growth of 4% versus fourth quarter 2020.
  • Fourth quarter operating loss of $4 million and adjusted operating profit of $94 million negatively impacted by accelerating inflation headwinds and continued supply chain constraints.
  • Significant pricing actions implemented at end of 2021 and early 2022, expecting a $100 million year-over-year favorable price-cost in 2022.

Headline financials

Total Revenue

$1.41B

Previous: $1.31B+8.0%
EPS (adj)

$0.04

Previous: $0.33-87.9%
Organic Orders Growth

51.0%

Previous: 9.0%+466.7%
Capital Expenditures

$30.1M

Previous: $23.1M+30.3%
Free Cash Flow

$8M

Previous: $175M-95.4%
Net Income

$22M

Previous: $74.9M-70.6%
Operating Income

-$4M

Previous: $95.1M-104.2%
Gross Profit

$374M

Previous: $427M-12.6%
Cash & Equivalents

$439M

Previous: $535M-17.9%
Total Assets

$6.94B

Previous: $5.07B+36.8%
Stock-Based Comp

$5.7M

Previous: $6M-5.0%

Revenue & EPS history

Vertiv · Revenue · Quarterly

$1.41B

Q4 2021+8%vs Q4 2020
Beat estimate in 7 of 11 quarters(64%)
ActualEstimate

Revenue by segment

Vertiv · $1.38B total across 1 segment · Q3 2023

  • Products
    $1.38B+21.7%

Forward guidance

Company anticipates that second half 2022 financial performance should show marked improvement compared to the first half of 2022, as price-cost becomes a more significant tailwind.

Tailwinds

  • Pricing should accelerate throughout 2022
  • Net price-cost tailwind starting in the third quarter.
  • Expect $100 million year-over-year favorable price-cost in 2022
  • Pricing actions expected to deliver a strong second half 2022
  • Pricing actions expected to position Vertiv well for 2023.

Headwinds

  • Production and deliveries continue to be constrained by supply chain headwinds, including parts shortages.
  • Supply chain headwinds will persist through 2022
  • Inflationary headwinds put pressure on operational and financial performance
  • Underestimated inflation and supply chain constraints for both timing and degree
  • First half of 2022 will be challenged

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 Q4 2021

Historical avgQ4 2021

+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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