Vertiv (NYSE:VRT) Releases FY 2025 Earnings Guidance

Key Points

• Vertiv has issued FY 2025 earnings guidance for earnings per share (EPS) at $3.750-$3.85 and revenue guidance of $9.9 billion-$10.1 billion, both exceeding consensus estimates.
• The company's stock recently saw a 1.2% increase and currently has a market capitalization of $55.60 billion.
• In addition to its earnings outlook, Vertiv recently enhanced its dividend to $0.0375, significantly up from its previous dividend of $0.01.

Vertiv (NYSE:VRT - Get Free Report) updated its FY 2025 earnings guidance on Friday. The company provided earnings per share (EPS) guidance of 3.750-3.85 for the period, compared to the consensus estimate of 3.561. The company issued revenue guidance of $9.9 billion-$10.1 billion, compared to the consensus revenue estimate of $9.5 billion.

Vertiv Trading Down 2.7%

Vertiv stock traded down $3.94 during mid-day trading on Friday, hitting $141.66. The company's stock had a trading volume of 10,317,134 shares, compared to its average volume of 8,340,559. The company has a debt-to-equity ratio of 0.93, a current ratio of 1.74 and a quick ratio of 1.28. The stock has a market cap of $53.99 billion, a price-to-earnings ratio of 67.78, a price-to-earnings-growth ratio of 1.36 and a beta of 1.77. The business has a 50 day moving average price of $122.46 and a 200-day moving average price of $104.87. Vertiv has a 12 month low of $53.60 and a 12 month high of $155.84.

Vertiv (NYSE:VRT - Get Free Report) last posted its quarterly earnings results on Wednesday, July 30th. The company reported $0.95 earnings per share for the quarter, topping the consensus estimate of $0.83 by $0.12. The business had revenue of $2.64 billion during the quarter, compared to the consensus estimate of $2.36 billion. Vertiv had a net margin of 8.93% and a return on equity of 51.64%. The firm's revenue for the quarter was up 35.1% on a year-over-year basis. During the same period in the previous year, the firm posted $0.67 earnings per share. As a group, analysts forecast that Vertiv will post 3.59 EPS for the current year.

Vertiv Increases Dividend

The company also recently declared a dividend, which was paid on Thursday, June 26th. Investors of record on Tuesday, June 17th were issued a dividend of $0.0375 per share. The ex-dividend date was Monday, June 16th. This represents a yield of 14.0%. This is an increase from Vertiv's previous dividend of $0.01. Vertiv's dividend payout ratio (DPR) is currently 7.18%.

Wall Street Analyst Weigh In

A number of equities research analysts recently commented on VRT shares. Roth Capital upped their price target on shares of Vertiv from $100.00 to $157.00 and gave the company a "buy" rating in a report on Tuesday. Royal Bank Of Canada upped their price target on shares of Vertiv from $143.00 to $162.00 and gave the company an "outperform" rating in a report on Thursday. Bank of America upped their price target on shares of Vertiv from $140.00 to $150.00 and gave the company a "buy" rating in a report on Thursday, July 17th. Melius upgraded shares of Vertiv from a "hold" rating to a "buy" rating and set a $165.00 price target for the company in a report on Tuesday, July 8th. Finally, Mizuho upped their price target on shares of Vertiv from $125.00 to $150.00 and gave the company an "outperform" rating in a report on Wednesday, July 16th. Three analysts have rated the stock with a hold rating, eighteen have given a buy rating and two have assigned a strong buy rating to the company's stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $144.06.

Insider Activity

In related news, EVP Stephen Liang sold 43,683 shares of the stock in a transaction dated Friday, June 6th. The shares were sold at an average price of $115.83, for a total transaction of $5,059,801.89. Following the sale, the executive vice president directly owned 9,551 shares of the company's stock, valued at approximately $1,106,292.33. This represents a 82.06% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Karsten Winther sold 5,500 shares of the stock in a transaction dated Friday, May 9th. The shares were sold at an average price of $94.33, for a total transaction of $518,815.00. Following the sale, the insider directly owned 18,847 shares in the company, valued at $1,777,837.51. This trade represents a 22.59% decrease in their ownership of the stock. The disclosure for this sale can be found here. 2.63% of the stock is owned by company insiders.

Institutional Trading of Vertiv

A hedge fund recently raised its stake in Vertiv stock. Empowered Funds LLC grew its stake in shares of Vertiv Holdings Co. (NYSE:VRT - Free Report) by 25.9% during the first quarter, according to the company in its most recent 13F filing with the Securities & Exchange Commission. The fund owned 11,557 shares of the company's stock after acquiring an additional 2,377 shares during the quarter. Empowered Funds LLC's holdings in Vertiv were worth $834,000 as of its most recent SEC filing. Hedge funds and other institutional investors own 89.92% of the company's stock.

About Vertiv

Vertiv Holdings Co, together with its subsidiaries, designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments in the Americas, the Asia Pacific, Europe, the Middle East, and Africa.