Vertiv reported better-than-expected fourth-quarter earnings early Wednesday, but the Nvidia partner came up short on revenue and current-quarter guidance. Vertiv stock, one of the hottest artificial intelligence plays over the past year, fell sharply.
Vertiv provides cooling systems for data centers that power the AI revolution. It has a partnership with Nvidia, but also has teamed up with Intel to provide liquid cooling for its upcoming Gaudi3 AI accelerators.
Vertiv Earnings
Vertiv earnings doubled to 56 cents a share, beating Q4 views by 3 cents. Revenue rose 14% to $1.87 billion, just missing views for $1.86 billion. It was the third straight quarter of slowing sales growth.
Vertiv sees Q1 EPS of 32-36 cents on revenue of $1.575-$1.625 billion, with growth of 42% and 5% at the respective midpoints. Wall Street had forecast Vertiv earnings at 37 cents a share with sales of $1.622 billion.
For the full year, Vertiv forecasts EPS of $2.20-$2.26 with sales of $7.515 billion-$7.665 billion. Those were roughly in line with consensus estimates.
Vertiv Stock
Vertiv stock fell as low as 55 shortly after Wednesday's open, quickly rebounded to nearly erase losses, before fading again to close down 5.6% at 58.55. Shares are below their 21-day moving average. VRT stock fell 1.5% to 62.02 on Tuesday.
Through Feb. 20, Vertiv stock had rallied 29.1% in 2024. Shares exploded 745% from their July 2022 low to last week's record high of 65.56.
The results come hours ahead of Nvidia earnings, with expectations running high for the AI chip leader.
Nvidia stock fell 2.85% t o 674.72 on Wednesday, but held its 21-day line. Shares sank 4.35% on Tuesday.
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