Vertiv Holdings Co (VRT) stock plummeted 40.16% in the current-market trading session at the price of $11.71 after reporting its earnings report for the fourth quarter and full-year 2021.
Vertiv provides software, hardware, and analytic services to ensure its clients’ applications perform optimally, run constantly, and grow with their business demands. The company solves the challenges faced by communication networks, data centers, and industrial facilities with a portfolio of cooling, power, and IT infrastructure solutions and services.
VRT Fourth Quarter 2021 Results
On 23rd February 2022, VRT published its financial results for the Q4 and the full-year ended 31st December 2021. The company has also presented its business updates and future outcomes. The net sales during Q4 of 2021 were $1,411M. It represents a surge of 8.0%, or $105M, from the same quarter of 2020.
Operating loss was $4M during the Q4 of 2021. For the same quarter of 2020, an operating profit was $124M. Vertiv has adjusted operating profit of $58M during the quarter, a drop from $94M during the same quarter of 2020. Net cash from operating activities was $37M during the fourth quarter of 2021. It represents a drop from $158M during the prior-year same period.
Chief Executive Officer of VRT, Rob Johnson, remarked that 2021 was a very tough year from multiple perspectives. The first half delivered robust results, but the financial performance was down during the second half due to inflationary headwinds and supply chain challenges. Despite disappointing financial results in 2021, there were some significant achievements last year.
Johnson added that they had learned a hard lesson from their slow production in 2021 and thus performed intellectually by the end of the year with assertive price actions. They hope that these motives will consequently enhance profitability in 2022, with each quarter successively better than the last one. In the future onward, they will set the stage for consistently improving profitability and growth.