Is Vertiv Holdings (VRT) Likely to Surpass Q2 Earnings Estimates?
Vertiv Holdings VRT is scheduled to report its second-quarter 2023 results on Aug 2, before market open.
The company projects second-quarter revenues in the band of $1.55-$1.65 billion. The Zacks Consensus Estimate for the top line is currently pegged at $1.62 billion, indicating an improvement of 16% year over year.
Vertiv expects adjusted earnings per share between 25 cents and 31 cents. The consensus mark for the same is pegged at 29 cents per share, implying a whopping 190% improvement from the year-ago quarter’s figure.
The company expects second-quarter 2023 adjusted operating income between $180 million and $200 million, suggesting a margin of 11.6-12.1%. VRT’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missed once and matched once, the average surprise being 11%.
Vertiv Holdings Co. Price and EPS Surprise
Vertiv Holdings Co. price-eps-surprise | Vertiv Holdings Co. Quote
Factors to Note
Vertiv’s second-quarter performance is likely to have benefited from solid demand for its hardware, software and analytics solutions. Continuous gains in pricing and substantial investments in all end markets, such as artificial intelligence and data center, are anticipated to drive VRT’s performance in the quarter.
The to-be-reported quarter’s top line is likely to have witnessed the impact of accelerated global footprint expansion outside the Americas. It is worth mentioning that the Americas, EMEA and APAC represented 56.7%, 22.7% and 20.6% of the total revenues, respectively, in the first quarter. Moreover, a growing customer base, backed by elevated demand for its cloud-based solutions amid the ongoing digitalizing trend, is likely to have contributed to Vertiv’s second-quarter top line.
The critical digital infrastructure and continuity solutions provider is expected to have witnessed enhanced operational execution and supply chain flow in the quarter to be reported. However, Vertiv’s significant exposure to material, freight and labor inflation and its continued investments on research and development growth are likely to have weighed on its performance in the quarter to be reported.
Earnings Whisper
Our proven model predicts an earnings beat for Vertiv this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is +4.65%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: VRT sports a Zacks Rank #1 at present.
Other Stocks With Favorable Combination
Per our model, Twilio TWLO, Celsius CELH and Inter Parfums IPAR have the right combination of elements to post an earnings beat in upcoming releases.
Twilio has an Earnings ESP of +6.90% and carries a Zacks Rank #2 at present. The company is scheduled to report second-quarter 2023 results on Aug 8. TWLO’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 138.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TWLO’s quarterly earnings is pegged at 29 cents per share, suggesting a year-over-year increase of 363.6%. Its quarterly revenues are estimated to increase 4.4% year over year to $984.5 million.
Currently, Celsius has an Earnings ESP of +50.64% and carries a Zacks Rank #2. The company is set to report its second-quarter 2023 results on Aug 8. CELH’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing once and delivering an average negative earnings surprise of 99%.
The Zacks Consensus Estimate for CELH’s second-quarter earnings is pegged at 31 cents per share, implying a year-over-year surge of 158.3%. The company is estimated to report revenues of $278.9 million, which suggests a surge of 81.1% from the year-ago quarter.
Inter Parfums has an Earnings ESP of +11.74% and flaunts a Zacks Rank #1 at present. The company is slated to report its second-quarter 2023 results on Aug 8. IPAR’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, missing once, the average surprise being 37.2%.
The Zacks Consensus Estimate for Inter Parfums’ second-quarter earnings is pegged at 88 cents per share, indicating a 2.3% increase from the year-ago quarter’s earnings of 86 cents. The consensus mark for revenues is pegged at $309.1 million, suggesting a year-over-year increase of 26.3%.
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Inter Parfums, Inc. (IPAR) : Free Stock Analysis Report
Twilio Inc. (TWLO) : Free Stock Analysis Report
Celsius Holdings Inc. (CELH) : Free Stock Analysis Report
Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
