Vertiv Holdings (VRT) reported third-quarter 2024 non-GAAP earnings of 76 cents per share, beating the Zacks Consensus Estimate by 7.04%. The figure jumped 46.2% year over year.VRT’s earnings beat the Zacks Consensus Estimate in the trailing four quarter, which is commendable.Find the latest EPS estimates and surprises on Zacks Earnings Calendar.Net sales increased 19% year over year to $2.07 billion, surpassing the Zacks Consensus Estimate by 4.64%. Net sales on an organic basis increased 19.2% year over y ...

The recommendations of Wall Street analysts are often relied on by investors when deciding whether to buy, sell, or hold a stock. Media reports about these brokerage-firm-employed (or sell-side) analysts changing their ratings often affect a stock's price. Do they really matter, though?Let's take a look at what these Wall Street heavyweights have to say about Vertiv Holdings Co. (VRT) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.Vertiv currently has an ...

Financial Data and Key Metrics - Q3 organic sales increased by 19% YoY, with double-digit growth in all three regions [11] - Adjusted operating profit reached $417 million, beating guidance, with a 20.1% adjusted operating margin, expanding 310 basis points [12] - Adjusted free cash flow was $336 million in Q3, with $773 million generated year-to-date [12] - Leverage reduced to 1.4x by the end of Q3, strengthening the balance sheet [12] - Full-year guidance raised: organic growth expected at 14%, adjusted operating profit at $1.485 billion, and adjusted free cash flow at $1 billion, up $125 million from previous guidance [12][28][30] Business Line Performance - Power management represents 32% of the business, thermal management 30%, IT systems 10%, infrastructure solutions 5%, and services 23% [15] - Liquid cooling growth exceeds market growth, with the company rapidly gaining market share [17] - The company has a complete range of liquid and high-density solutions, including in-rack CDUs, manifolds, and immersion cooling [18] Market Performance - EMEA led with 25% organic sales growth, driven by strong demand from colocation and hyperscale customers [26] - Americas saw 21% organic sales growth, with broad strength across multiple market verticals and product lines [25] - APAC sales increased 10% organically, with China growing double-digits, though the company remains cautious about Q4 growth in China due to macroeconomic challenges [26] Strategic Direction and Industry Competition - The company is focused on AI and liquid cooling, with AI driving demand for data centers and liquid cooling becoming increasingly important [6][7] - Vertiv's portfolio is the broadest in the industry, covering thermal systems, power management, IT solutions, modular solutions, and services [8] - The company is working closely with key technology providers like NVIDIA to co-develop solutions for AI factories [9][20] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the long-term growth trajectory, driven by AI and data center demand [6][9] - The company expects growth in 2025 to accelerate relative to 2024, supported by strong orders and operational performance [10][12] - Inflation is expected to continue, and the company has incorporated this into its commercial excellence programs [14] Other Important Information - The company has expanded capacity, including a new modular solutions facility in the Americas, which started production and shipments in Q3 [14] - The Vertiv Operating System (VOS) continues to deliver incremental capacity, productivity gains, and reduced lead times [14] - The company plans to share revised long-term margin ambitions at the November 18th Investor Event [23] Q&A Session Summary Question: How does order timing work for hyperscalers building multi-location campuses? - Orders are typically placed for buildings currently being deployed, with good visibility on the entire program but exact PO timing varying by hyperscaler [34] Question: What drove the outperformance in Q3 orders? - The company exceeded Q3 order expectations, with strong trailing 12-month order growth indicating a healthy long-term trajectory [37] Question: How does Vertiv compete with ODMs in liquid cooling? - ODMs are seen as a go-to-market opportunity rather than competition, with Vertiv providing technology and service support to ODMs [38] Question: Will Vertiv continue to disclose trailing 12-month order numbers? - Yes, the company will continue to use trailing 12-month orders as the primary metric due to the lumpiness of orders [42] Question: How is the backlog expected to trend in 2025? - The company is optimistic about 2025 growth, supported by a strong backlog and pipeline, though specific details will be shared at the November Investor Event [42][43] Question: What is driving the confidence in incremental margins? - Confidence is driven by operational leverage, commercial execution, and a favorable price-cost environment [54] Question: How is the shift to liquid cooling affecting services revenue? - The services business is growing, with increasing demand for liquid cooling-related services, including installation, commissioning, and predictive maintenance [70] Question: Will thermal management growth outpace power management? - Liquid cooling is expected to grow rapidly, but power management will also benefit from data center densification, with the entire portfolio expected to see positive growth [72]

V VERTIV. Third Quarter 2024 Results October 23, 2024 Cautionary Statement Regarding Forward-Looking Statements This presentation, and other statements that Vertiv Holdings Co. ("Company") may make in connection therewith, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to Vertiv's future financial or business performance, strategies or expectations, and as such are not historical facts. This includes, without limitation, stateme ...

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 Reports Strong Third Quarter 2024 Results and Raises Full Year Guidance • Net sales of $2,074 million, 19% higher than third quarter 2023. Operating profit of $372 million, up 48% from third quarter 2023, and adjusted operating profit of $417 million, up 41% from third quarter 2023 • Strong third quarter trailing twelve-month (TTM) organic orders up ~37% compared to prior year TTM period. Third quarter organic orders growth of ~17% vs. prior year • Adjusted operating margin of 20.1%, up 310 basis poi ...

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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 ...

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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 ...