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Vertiv Holdings (NYSE:VRT), the Ohio-based roll up of equipment and services providers to data centers, reported Q4 results before the bell. The Company posted in-line Q4 revenue, but guided well below Street expectations, citing supply chain challenges.
Street consensus EPS for 2022 stood at $1.33 Wednesday morning; Vertiv (VRT) guided 2022 to $0.70 (midpoint). Management indicated, “while the demand environment stays strong, production and deliveries continue to be constrained by supply chain headwinds, including parts shortages.” The Company assumes headwinds will persist through 2022.
Supply chain bottlenecks and inflation have been a key theme of Q4 results. A number of resource producers have benefitted handsomely, while product producers like GE (NYSE:GE), Sherwin (NYSE:SHW) and McDonald’s (NYSE:MCD) have been penalized for an inability to manage the headwind. As the focus shifts towards Q2 results, resource analysts are calling for a super cycle in energy and metals prices, while industrials and consumers strategists call for easing prices on the back of reduced supply chain bottlenecks.
