Key Highlights

  • VRT shares rose 3.56% pre-market to $210.81, up $7.25 from the prior close of $203.56.
  • A record 11-session losing streak took nearly 20% off the stock.
  • Third-quarter results are due before market open on October 28.
  • Market estimates point to Q3 revenue of $3.7 billion and adjusted EPS of $1.82.
  • Backlog stood at about $15 billion after Q2 revenue rose 24%.

Record Losing Streak Ends With a Pre-Market Bounce

Vertiv (NYSE:VRT) shares rose 3.56% pre-market today to $210.81, a gain of $7.25 from the prior close of $203.56. The bounce follows a record 11-session losing streak that took nearly 20% off the stock, driven by worries over AI data center financing after bond yields at CoreWeave (NASDAQ:CRWV) spiked and hotter inflation lifted interest rates. Shares closed Tuesday down 1.22%.

Vertiv, based in Westerville, Ohio, designs, manufactures and services critical digital infrastructure for data centers, communication networks and commercial and industrial facilities. Its portfolio covers AC and DC power management, UPS systems, switchgear, busbar, thermal management and integrated racks, sold in more than 130 countries by about 34,000 employees.

Supportive Signals From ABB Orders and a CoreWeave Rebound

ABB's record data center-led orders and a CoreWeave rebound after hours added supportive context. Analysts trimmed price targets but kept them well above the share price, with Roth at $335, Morgan Stanley at $330, RBC at $323 and Mizuho at $280, while BofA set a $375 target.

Demand Backdrop: Revenue Up 24% and a $15 Billion Backlog

Second-quarter revenue rose 24% from a year earlier, margins have expanded and the company reports a backlog of about $15 billion. Vertiv reports earnings of $4.72 per share, with a forward P/E of 23.53 and a trailing P/E of 46.05. The 52-week range runs from $147.82 to $379.94.

Next Up: October 28 Earnings

Vertiv will report third-quarter results before market open on October 28, with a conference call at 11 a.m. ET the same day. Market estimates point to revenue of $3.7 billion and adjusted EPS of $1.82, and the stock has averaged an 11.48% move after reports, with the market implying about 9.58% this time.