Vertiv (NYSE:VRT) stock isn’t doing so hot on Wednesday following the release of the manufacturing company’s earnings report for the fourth quarter of 2021.
Let’s start off with the company’s adjusted earnings per share of 6 cents. That’s worse than the 12 cents per share reported in the same period of the year prior. It’s also a massive missed compared to Wall Street’s estimate of 28 cents per share.
Next up we have to discuss Vertiv’s revenue of $1.41 billion for the fourth quarter of 2021. That’s an 8% increase from the $1.31 billion reported during the same period of the year prior. Unfortunately, it just misses analysts’ estimate of $1.42 billion.
Not helping VRT stock today is the company’s guidance for the first quarter of 2022. This has it expecting adjusted EPS of -20 cents to -15 cents on revenue ranging from $1.1 billion to $1.15 billion. None of that looks good next to Wall Street’s estimates of 23 cents per share and revenue of $1.27 billion.
Vertiv outlook for the full year of 2022 is also making matters worse today. The company is expecting adjusted EPS between 65 cents and 75 cents with revenue of $5.5 billion to $5.8 billion. That doesn’t stack up well next to analysts’ estimates of $1.33 per share and revenue of $5.73 billion for the year.
Rob Johnson, CEO of Vertiv, said this in the earnings report hammering VRT stock.
“We consistently underestimated inflation and supply chain constraints for both timing and degree, which dictated a tepid 2021 pricing response. We learned a hard lesson from our slow response in 2021, and we acted decisively late last year and early this year with aggressive price actions. We expect that the impact of these actions will progressively show in our 2022 profitability, with each quarter sequentially better than the previous quarter, and that our second half 2022 results will be strong – setting the stage for consistently improving profitability going forward.”
VRT stock is down 39.8% as of Wednesday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.