Why Vertiv Holdings Stock Got Destroyed Today
Shares of Vertiv Holdings (NYSE: VRT), a recent special purpose acquisition corporation (SPAC) offering from Goldman Sachs and a manufacturer of cooling systems for data centers, collapsed on Wednesday, falling 43% through 10:30 a.m. ET after reporting a huge earnings miss for the fourth quarter of 2021.
Analysts had forecast that Vertiv would earn $0.28 per share on sales of $1.42 billion in Q4. Vertiv came very close to hitting that revenue target, but missed earnings by a mile, reporting only a $0.06-per-share profit.
Sales grew only modestly in Vertiv's fourth quarter, up 8% year over year, and profits were cut in half from last year's $0.12. Management blamed "inflationary and supply chain pressures" for its abysmal profit.
Source Fool.com
