Columbus, Ohio – Vertiv, a company based in Columbus, Ohio, reported strong fourth-quarter earnings, beating expectations for earnings per share. However, the company fell short on revenue and provided guidance for the current quarter that missed expectations. Vertiv, known for providing cooling systems for data centers powering the AI revolution, is a partner of Nvidia, and it also has a partnership with Intel to provide liquid cooling for its upcoming Gaudi3 AI accelerators.
The company’s earnings doubled to 56 cents a share, outperforming Q4 views by 3 cents. Although revenue rose by 14% to $1.87 billion, it slightly missed analyst expectations of $1.86 billion. This marks the third consecutive quarter of slowing sales growth for the company.
Looking ahead, Vertiv forecasts EPS of 32-36 cents for the first quarter on revenue of $1.575-$1.625 billion. This represents a growth of 42% and 5% at the respective midpoints. These figures were below Wall Street’s expectations, which had forecast EPS of 37 cents a share and sales of $1.622 billion.
Vertiv stock experienced a sharp 14% decline in early Wednesday market trading, dropping below 54. This indicated a gap below the 21-day moving average and nearing the 50-day line. Prior to this, the stock had rallied 29.1% in 2024 and had surged by a significant 745% from its July 2022 low to a record high of 65.56.
The results come just before Nvidia’s earnings report, with high expectations for the AI chip leader. As a result of this, Nvidia’s stock also fell nearly 2% in premarket trade. Shares of Nvidia had already decreased by 4.35% the day before.
The partnership between Vertiv and Nvidia has been closely watched, particularly in light of the AI revolution and the growing demand for data center infrastructure to support this technological advancement. As the market continues to evolve, the performance of both Vertiv and Nvidia will be closely monitored by investors and industry experts alike.