• For the first quarter, the company saw total sales jump 30% to $2.65 billion and adjusted earnings per share of $1.17.
• Americas and APAC help boost sales in Q1, offsetting weakness in EMEA.
• Management expects the data center demand to help its businesses in the long run.

Shares of digital infrastructure solutions company Vertiv Holdings Co. (VRT) declined 6% on Wednesday premarket after the company’s second-quarter (Q2) guidance came in below expectations.

The company’s first-quarter (Q1) earnings surpassed Street estimates, but sales were in line with expectations.

In Q1, the company saw total sales jump 30% to $2.65 billion and adjusted earnings per share of $1.17. The consensus estimate per Fiscal.ai for sales and EPS stood at $2.65 billion and $1.01 per share, respectively. Strong sales surges in the Americas and APAC helped offset a 20% slump in EMEA.

For Q2, Vertiv expects sales between $3.25 billion and $3.45 billion and adjusted EPS in the $1.37-$1.43 range. Both metrics are below Street expectations at the midpoint, with the consensus estimates at $3.40 billion and $1.43 per share.

For the full year, Vertiv raised its sales expectations to the $13.5 billion to $14 billion range, from $13.25 billion to $13.75 billion previously guided; and adjusted EPS to the $6.30 to $6.40 range, from $5.97 to $6.07. The consensus estimates are $13.7 billion and $6.16 per share.

Management Paints A Pretty Picture

The company’s senior management expects the current artificial-intelligence data center buildout in the U.S. to benefit it financially in the long run.

“We're seeing data center infrastructure requirements evolve significantly,” said Chief Executive Officer Giordano Albertazzi. “As infrastructure density increases and deployment timelines compress, we're positioned to be the partner customers need to bring their most ambitious projects to life, at scale.”

How Did Retail Traders React?

On Stocktwits, retail sentiment remained ‘extremely bullish’ amid ‘high’ messaging volumes over the past 24 hours.

One user on the platform called the report “awesome.”

VRT stock has nearly doubled in value so far this year and has more than quadrupled over the past 12 months, outpacing the benchmark S&P index.

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