NYSE$VRT

Vertiv Holdings Co · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Vertiv reported record Q4 2022 net sales, operating profit, adjusted operating profit, and price realization.

Vertiv reported a strong Q4 2022 with net sales of $1,655 million, a 17.3% increase compared to the previous year. Operating profit was $162 million, and adjusted operating profit reached $211 million. The company's backlog reached a record high of $4.8 billion.

  • Net sales reached $1,655 million, with a 17.3% increase compared to Q4 2021.
  • Operating profit was $162 million, a significant increase from the prior year.
  • Adjusted operating profit was $211 million, driven by pricing and volume benefits.
  • Backlog reached a record high of $4.8 billion, providing visibility for 2023 growth.

Headline financials

Total Revenue

$1.66B

Previous: $1.41B+17.3%
EPS (adj)

$0.28

Previous: $0.04+600.0%
Operating Margin

9.8%

No prior period
Capital Expenditures

$38.3M

Previous: $30.1M+27.2%
Free Cash Flow

$143M

Previous: $8M+1691.3%
Net Income

$26.6M

Previous: $22M+20.9%
Operating Income

$162M

Previous: -$4M+4160.0%
Gross Profit

$512M

Previous: $374M+36.9%
Cash & Equivalents

$261M

Previous: $439M-40.7%
Total Assets

$7.1B

Previous: $6.94B+2.2%
Stock-Based Comp

$4.6M

Previous: $5.7M-19.3%

Revenue & EPS history

Vertiv · Revenue · Quarterly

$1.66B

Q4 2022+17.3%vs Q4 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Vertiv · $1.3B total across 1 segment · Q4 2022

  • Products
    $1.3B

Forward guidance

Vertiv anticipates 2023 organic net sales growth of 15%, supported by its backlog. Full-year guidance for adjusted operating profit is up over 75%, and adjusted operating margin is up 430 basis points versus 2022.

Tailwinds

  • 2023 organic net sales growth of 15%
  • Price realization of $275 million
  • Overall price-cost tailwind of $100 million versus the prior year.
  • Adjusted operating profit is up over 75%
  • Adjusted operating margin is up 430 basis points versus 2022.

Headwinds

  • Macro-economic environment remains uncertain
  • Incremental investment of $40 million planned for 2023.
  • Adjusted Free Cash Flow(2)($100M) – ($50M)
  • First Quarter 2023 Net sales $1,350M - $1,450M
  • First Quarter 2023 Adjusted operating profit $115M – $135M

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 2022

Historical avgQ4 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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