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Vertiv Holdings Co. (VRT) designs, manufactures, and services critical digital infrastructure technologies and life cycle services for data centers, communication networks, and commercial and industrial environments. 
It offers AC and DC power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, and management systems for monitoring and controlling digital infrastructure that are integral to the technologies used for various services, including e-commerce, online banking, file sharing, video on-demand, energy storage, wireless communications, Internet of Things, and online gaming.
The company also provides lifecycle management services, predictive analytics, and professional services for deploying, maintaining, and optimizing its products and their related systems; and preventative maintenance, acceptance testing, engineering and consulting, performance assessments, remote monitoring, training, spare parts, and digital critical infrastructure software services.
It offers its products primarily under the Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent brands. The company serves social media, financial services, healthcare, transportation, retail, education, and government industries. Shares have formed a bullish "cup and handle" and shares are expected to moved higher. The company's earnings were better than expected and company guided higher.
On August 2nd, VRT reported earnings of $0.46 per share on revenue of $1.73 billion for the second quarter ended June 2023. The consensus earnings estimate was $0.29 per share on revenue of $1.62 billion. The company beat expectations by 43.75% while revenue grew 23.92% on a year-over-year basis.
Guided Higher: The company said it expects third-quarter earnings of $0.41 to $0.46 per share on revenue of $1.70 billion to $1.80 billion and 2023 earnings of $1.54 to $1.64 per share on revenue of $6.71 billion to $6.91 billion. The company's previous guidance was 2023 earnings of $1.22 to $1.32 per share on revenue of $6.45 billion to $6.60 billion. The previous consensus estimate was earnings of $0.34 per share on revenue of $1.65 billion for the quarter ending September 30, 2023 and earnings of $1.25 per share on revenue of $6.55 billion for the year ending December 31, 2023.
Entry Point: $38.00
Trading Range: $9.48 - $40.41
Stop Loss: $37.00
Target Price: $41.80
