Vertiv Holdings Co. (VRT) came out with quarterly earnings of $0.76 per share, beating the Zacks Consensus Estimate of $0.71 per share. This compares to earnings of $0.52 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.04%. A quarter ago, it was expected that this company would post earnings of $0.59 per share when it actually produced earnings of $0.67, delivering a surprise of 13.56%.Over the last four quarters, the compan ...

[Vertiv Q3 2024 Earnings Release](index=1&type=section&id=Vertiv_Q3_2024_Earnings_Release) [Financial Highlights and Business Overview](index=1&type=section&id=Financial%20Highlights%20and%20Business%20Overview) Vertiv reported strong Q3 2024 results with significant growth in sales and profit, driven by data center demand and AI infrastructure | Metric | Q3 2024 | Change vs Q3 2023 | | :--- | :--- | :--- | | Net Sales | $2,074 million | +19% | | Operating Profit | $372 million | +48% | | Adjusted Operating Profit | $417 million | +41% | | Adjusted Operating Margin | 20.1% | +310 bps | | Diluted EPS | $0.46 | - | | Adjusted Diluted EPS | $0.76 | - | - Order growth remains strong, indicating sustained demand: - Trailing twelve-month (TTM) organic orders increased by approximately **37% year-over-year** - Third-quarter organic orders grew by about **17% compared to the prior year's quarter**[1](index=1&type=chunk) - Strategic drivers include a strong market position in enabling Artificial Intelligence (AI) and a focus on operational excellence, with accelerating revenue from **liquid cooling technologies**[3](index=3&type=chunk) [Financial Condition and Guidance](index=2&type=section&id=Financial%20Condition%20and%20Guidance) The company showed strong cash generation, reduced leverage, and raised its full-year 2024 guidance based on a record backlog [Cash Flow and Liquidity](index=2&type=section&id=Cash%20Flow%20and%20Liquidity) Vertiv generated strong operating and free cash flow in Q3 2024, improving liquidity and reducing net leverage to 1.4x | Metric | Q3 2024 | Change vs Q3 2023 | | :--- | :--- | :--- | | Operating Cash Flow | $375 million | +$126 million | | Adjusted Free Cash Flow | $336 million | +$115 million | - The company maintains strong liquidity of **$1.5 billion** and has reduced its net leverage to **1.4x** as of the end of Q3 2024[6](index=6&type=chunk) - Capital expenditures are forecasted to be between **$175 million and $200 million** for 2024 to support growth, including the expansion of modular infrastructure capabilities[5](index=5&type=chunk) [Updated 2024 Guidance](index=2&type=section&id=Updated%202024%20Guidance) Vertiv raised its Q4 and full-year 2024 guidance, projecting continued growth in sales, profit, and adjusted EPS **Fourth Quarter 2024 Guidance** | Metric | Guidance Range | | :--- | :--- | | Net Sales | $2,115M - $2,165M | | Organic Net Sales Growth | 11% - 15% | | Adjusted Operating Profit | $427M - $447M | | Adjusted Operating Margin | 20.2% - 20.6% | | Adjusted Diluted EPS | $0.80 - $0.84 | **Full Year 2024 Guidance** | Metric | Guidance Range | | :--- | :--- | | Net Sales | $7,780M - $7,830M | | Organic Net Sales Growth | 13% - 15% | | Adjusted Operating Profit | $1,475M - $1,495M | | Adjusted Operating Margin | 18.9% - 19.1% | | Adjusted Diluted EPS | $2.66 - $2.70 | | Adjusted Free Cash Flow | $975M - $1,025M | [Consolidated Financial Statements](index=8&type=section&id=Consolidated%20Financial%20Statements) The statements show a 19% sales increase, asset growth to $8.9 billion, and a significant rise in operating cash flow [Consolidated Statements of Operations](index=8&type=section&id=Consolidated%20Statements%20of%20Operations) Net sales grew 19% to $2.07 billion and operating profit rose 48% to $371.6 million in Q3 2024 year-over-year | (In millions, except per share data) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net Sales | $2,073.5 | $1,742.6 | | Operating Profit | $371.6 | $250.9 | | Net Income | $176.6 | $94.1 | | Diluted EPS | $0.46 | $0.24 | [Consolidated Balance Sheets](index=9&type=section&id=Consolidated%20Balance%20Sheets) Total assets grew to $8.89 billion by September 30, 2024, driven by increases in current assets like inventory | (In millions) | Sep 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Total Current Assets | $4,804.6 | $4,001.5 | | Total Assets | $8,891.4 | $7,998.5 | | Total Current Liabilities | $3,489.2 | $2,305.4 | | Total Liabilities | $7,077.7 | $5,983.6 | | Total Equity | $1,813.7 | $2,014.9 | [Consolidated Statements of Cash Flows](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities for the first nine months of 2024 increased substantially to $894.1 million | (In millions) | Nine Months Ended Sep 30, 2024 | Nine Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $894.1 | $544.3 | | Net cash used for investing activities | $(120.7) | $(71.1) | | Net cash used for financing activities | $(640.4) | $(236.7) | | Increase in cash and cash equivalents | $128.8 | $231.8 | [Segment and Product Performance](index=12&type=section&id=Segment%20and%20Product%20Performance) All regions and offerings showed strong sales growth in Q3 2024, with EMEA leading regional growth at 26.1% [Regional Segment Results](index=12&type=section&id=Regional%20Segment%20Results) The Americas and EMEA drove profit growth, while APAC sales grew but saw margin compression in Q3 2024 **Q3 2024 Net Sales by Region (vs. Q3 2023)** | Region | Net Sales (M) | Change | Organic Change | | :--- | :--- | :--- | :--- | | Americas | $1,198.6 | +19.5% | +20.5% | | APAC | $432.4 | +11.3% | +10.4% | | EMEA | $442.5 | +26.1% | +25.2% | | **Total** | **$2,073.5** | **+19.0%** | **+19.2%** | **Q3 2024 Adjusted Operating Profit & Margin by Region** | Region | Adj. Op. Profit (M) | Change | Adj. Op. Margin | Change (bps) | | :--- | :--- | :--- | :--- | :--- | | Americas | $303.4 | +46.9% | 25.3% | +470 bps | | APAC | $44.1 | -11.3% | 10.2% | -260 bps | | EMEA | $114.4 | +49.2% | 25.9% | +400 bps | [Sales by Product and Service Offering](index=13&type=section&id=Sales%20by%20Product%20and%20Service%20Offering) Product sales grew 19.7% and services sales grew 16.4% in Q3 2024, with strong organic growth across all regions **Q3 2024 Sales by Offering (vs. Q3 2023)** | Offering | Net Sales (M) | Change | | :--- | :--- | :--- | | Products | $1,615.6 | +19.7% | | Services & Spares | $457.9 | +16.4% | | **Total** | **$2,073.5** | **+19.0%** | **Q3 2024 Organic Growth by Offering** | Offering | Organic Growth % | | :--- | :--- | | Products | 19.9% | | Services & Spares | 16.9% | | **Total** | **19.2%** | [Reconciliation of GAAP to Non-GAAP Measures](index=11&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Measures) This section details reconciliations of GAAP figures to non-GAAP metrics like adjusted operating profit and adjusted EPS - The company uses non-GAAP measures such as adjusted operating profit, adjusted operating margin, organic net sales growth, adjusted free cash flow, and adjusted diluted EPS to provide supplemental information on ongoing operations[12](index=12&type=chunk)[25](index=25&type=chunk) [Adjusted Operating Profit and Margin](index=15&type=section&id=Adjusted%20Operating%20Profit%20and%20Margin) Adjusted operating profit reached $416.9 million in Q3 2024, expanding the adjusted operating margin by 310 basis points | (In millions) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Operating Profit (GAAP) | $371.6 | $250.9 | | Amortization of intangibles | $45.3 | $45.5 | | **Adjusted Operating Profit (Non-GAAP)** | **$416.9** | **$296.4** | | Margin | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Operating Margin (GAAP) | 17.9% | 14.4% | | **Adjusted Operating Margin (Non-GAAP)** | **20.1%** | **17.0%** | [Adjusted Free Cash Flow](index=15&type=section&id=Adjusted%20Free%20Cash%20Flow) Adjusted free cash flow increased significantly to $335.9 million in Q3 2024 from $221.3 million in the prior year | (In millions) | Three Months Ended Sep 30, 2024 | Three Months Ended Sep 30, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $375.1 | $248.7 | | Less: Capital expenditures & software | $(39.2) | $(27.4) | | **Adjusted Free Cash Flow** | **$335.9** | **$221.3** | [Adjusted Diluted EPS](index=16&type=section&id=Adjusted%20Diluted%20EPS) GAAP diluted EPS of $0.46 was adjusted to a non-GAAP figure of $0.76 for Q3 2024 after key exclusions **Q3 2024 Reconciliation of Diluted EPS to Adjusted Diluted EPS** | | Per Share Amount | | :--- | :--- | | GAAP Diluted EPS | $0.46 | | Amortization of intangibles | $0.12 | | Change in warrant liability | $0.18 | | **Non-GAAP Adjusted Diluted EPS** | **$0.76** | [2024 Adjusted Guidance Reconciliation](index=17&type=section&id=2024%20Adjusted%20Guidance%20Reconciliation) Full-year 2024 GAAP EPS guidance of $1.52 is reconciled to the non-GAAP adjusted EPS guidance of $2.68 **Full Year 2024 Guidance Reconciliation (Diluted EPS)** | | Per Share Amount | | :--- | :--- | | GAAP Diluted EPS | $1.52 | | Amortization of intangibles | $0.46 | | Change in warrant liability | $0.70 | | **Non-GAAP Adjusted Diluted EPS** | **$2.68** | [Supplementary Information](index=3&type=section&id=Supplementary%20Information) This section provides details on the earnings call, company background, and cautionary forward-looking statements [About Vertiv and Conference Call Information](index=3&type=section&id=About%20Vertiv%20and%20Conference%20Call%20Information) Vertiv, a global provider of critical digital infrastructure, will host a conference call to discuss Q3 2024 results - Vertiv provides a portfolio of power, cooling, and IT infrastructure solutions and services from the cloud to the edge of the network[11](index=11&type=chunk) - Management will discuss Q3 2024 results on a conference call scheduled for October 23 at 11 a.m. Eastern Time[10](index=10&type=chunk) [Cautionary Note Concerning Forward-Looking Statements](index=3&type=section&id=Cautionary%20Note%20Concerning%20Forward-Looking%20Statements) This legal disclaimer notes that forward-looking statements are subject to risks that could alter actual results - The report contains forward-looking statements concerning future financial performance, strategies, and expectations, including guidance for Q4 and full-year 2024[14](index=14&type=chunk) - These statements are subject to a number of risks and uncertainties, such as continued growth of customer markets, competition, supply chain management, and inflation, which could cause actual results to differ materially[16](index=16&type=chunk)

Vertiv (VRT) is set to report its third-quarter 2024 results on Oct. 23. For the third quarter of 2024, Vertiv expects revenues between $1.94 billion and $1.99 billion, indicating an organic growth rate of 12-16% year over year. Vertiv expects third-quarter 2024 non-GAAP earnings between 65 cents and 69 cents per share. The Zacks Consensus Estimate for third-quarter revenues is pegged at $1.98 billion, indicating year-over-year growth of 13.71%. The consensus mark for earnings is pegged at 71 cents per shar ...

When it comes to short-term investing or trading, they say "the trend is your friend." And there's no denying that this is the most profitable strategy. But making sure of the sustainability of a trend to profit from it is easier said than done. The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the s ...

Vertiv (VRT) is expanding its liquid cooling portfolio with the launch of the CoolPhase CDU liquid-torefrigerant coolant distribution unit and CoolChip Fluid Network in-rack manifold on Monday. These solutions are now available in North America. These new solutions expand VRT's infrastructure offerings for data centers. These modular cost-effective systems can be easily deployed in data centers that were not originally configured for liquid cooling. Hence, data centers can now support high-density computing ...

Vertiv (VRT) shares have surged 122.4% year to date (YTD), outperforming the Zacks Computers - IT Services industry and the S&P 500's return of 8.3% and 20.8%, respectively. VRT has also outperformed The Technology Select Sector SPDR Fund (XLK) ETF, which has gained 19.5% YTD. Vertiv's massive outperformance can be attributed to investors' confidence in Vertiv's innovative product portfolio, strong partner base and solid financials. On the product front, the company has been persistently increasing its offe ...

The latest trading session saw Vertiv Holdings Co. (VRT) ending at $106.73, denoting a +1.45% adjustment from its last day's close. The stock exceeded the S&P 500, which registered a loss of 0.96% for the day. Meanwhile, the Dow experienced a drop of 0.94%, and the technology-dominated Nasdaq saw a decrease of 1.18%. The company's shares have seen an increase of 46.58% over the last month, surpassing the Computer and Technology sector's gain of 7.35% and the S&P 500's gain of 4.3%. The investment community ...

FX Empire Logo English check-icon Italiano Español Português Deutsch العربية Français Important DisclaimersThe content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial ...

Momentum investing revolves around the idea of following a stock's recent trend in either direction. In the 'long' context, investors will be essentially be "buying high, but hoping to sell even higher." With this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving that way. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades. While many investors like to look for momen ...

Vertiv (VRT) is expanding infrastructure offerings for data centers through its latest Vertiv EnergyCore battery cabinets. These EnergyCore cabinets are factory-assembled with Lithium-Iron-Phosphate battery modules from Vertiv's internally-powered battery management system. Vertiv EnergyCore battery cabinets are compatible with most current and legacy three-phase uninterruptible power supply (UPS) systems, including the recently launched Trinergy and Liebert APM2. These cabinets are very suitable for high-d ...