Vertiv Holdings Co (VRT) declined in the current market after announcing its fourth quarter and fiscal 2021 results. VRT values at $11.84, losing more than 39% compared to yesterday’s closing price. The stock closed at $19.57 at the end of the last trading session. The stock volume traded in the last trading session was around 2.31 million shares. The current market cap of the company is around $4.25 billion.
VRT: Q4 and Fiscal 2021 Key Financials
- Vertiv Holdings revenue in Q4 2021 was $1.4 billion, slightly higher than compared to the revenue of $1.3 in Q4 2020.
- Fiscal year revenue was $4.99 billion, and it is a slight increase compared to the revenue of $4.37 billion in fiscal 2020.
- The company’s net income in Q4 2021 was around $22 million. The net income in Q4 2020 was $40 million.
- VRT’s net income in fiscal 2021 was around $119.6 million, compared to the net loss of $327 million in fiscal 2020.
- The Q4 2021 diluted earnings per share were $0.06.
- For fiscal 2021, diluted earnings per share were $0.33.
External effects on Vertiv Holdings Co business
The company has faced issues like inflation and supply chain disruption, due to which fiscal 2021 was a challenging year for the company. Despite the challenges, they achieved positive results, but they are not satisfied as the results are not per their potential and the company’s expectations. The sales in China and India were down due to the expiration of government subsidies. Another reason for the decline in sales was the lockdowns due to Covid-19.
VRT CEO’s remarks
Vertiv’s Chief Executive Officer Rob Johnson said that supply chain issues and inflationary pressures impacted our operational and financial performance in the third quarter. As a result, we undervalued inflation and supply chain restrictions, leading to a sluggish 2021 price reaction. With solid pricing measures, we learned from our tardy response in 2021. We anticipate these efforts to positively affect profitability in 2022, with each quarter improving on the preceding quarter and a solid second half of 2022, paving the way for future growth.
VRT 2022 outlook
VRT expects revenue of $1.1 billion to $1.15 billion in Q1 2022. For fiscal 2022, their estimated revenue is between $5.5 billion and $5.8 billion in total. The company expects an operating margin of around 9.1% to 9.5% in fiscal 2022.
Conclusion
The stock of the company is declining despite the positive results. They did not achieve their expected results, due to which the stock is declining. They constantly ignored the supply chain issues and lockdown due to the covid-19 new variants.
