Vertiv (VRT) reports Q3: everything you need to know ahead of earnings

What happened

Vertiv will report third-quarter earnings on Wednesday before the market opens. Last quarter, revenue was $3.27 billion, up 24.1% from a year earlier, but the company missed analysts' revenue expectations. Analysts expect this quarter's revenue to grow 40.8% year on year.

Confirmed

Global impact / market context

Vertiv sells equipment for data centers, so its results show whether demand for such gear is holding up. Revenue is expected to grow faster than last year, but the company has missed revenue estimates before, which could make investors cautious about the outlook.

Analyst inference

Some electrical systems peers have already reported. Allegion beat revenue expectations with 9.6% growth, while Acuity Brands grew 2.9% and fell short of estimates, a mixed picture that gives investors a partial read on demand before Vertiv's report.

Analyst inference

What to watch

1. Vertiv reports earnings on Wednesday before the market opens, and last quarter revenue was $3.27 billion, up 24.1% year on year, while the company missed analysts' revenue expectations. Confirmed
2. Watch whether Vertiv meets the market's expected 40.8% year-on-year revenue growth this quarter, an improvement from the 29% increase recorded in the same quarter last year. Proposed
3. Watch whether Vertiv again misses Wall Street's revenue estimates, as it has multiple times over the past two years, since another miss could weaken investor confidence in the demand outlook. Analyst inference

Evidence

• stockstory.org