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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.Often, the direction of a stock's price movement reverses quickly after taking a position in it, making investors incur a short-term capital loss. So, it's important to ensure that there are enough factors -- such as sound fundamentals, positive earnings estimate rev ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly period ended September 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __to__ Commission File No. 001-38518 Vertiv Holdings Co (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incorporatio ...

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 ...

Core Viewpoint - Wall Street analysts' recommendations significantly influence investor decisions, particularly regarding Vertiv Holdings Co. (VRT), which currently has an average brokerage recommendation (ABR) of 1.00, indicating a Strong Buy [1] Brokerage Recommendation Trends for VRT - Vertiv's ABR is based on 12 brokerage firms, all of which have issued Strong Buy ratings, resulting in a 100% consensus for buying the stock [1] - Despite the strong ABR, studies indicate that brokerage recommendations often lack success in guiding investors towards stocks with the highest price increase potential [2] - Brokerage analysts tend to exhibit a strong positive bias due to their firms' vested interests, with five Strong Buy recommendations for every Strong Sell recommendation [2] Zacks Rank and Its Importance - Zacks Rank categorizes stocks into five groups, from Strong Buy to Strong Sell, and is based on earnings estimate revisions, making it a reliable indicator of near-term stock performance [3][5] - The Zacks Rank is distinct from ABR, as it is a quantitative model that reflects earnings estimate revisions rather than solely relying on broker recommendations [4] - The Zacks Rank is timely and reflects the latest earnings estimates, unlike the ABR, which may not always be up-to-date [6] Investment Considerations for VRT - The Zacks Consensus Estimate for Vertiv has increased by 3.7% over the past month to $2.58, indicating growing optimism among analysts regarding the company's earnings prospects [7] - The increase in consensus estimates, along with other factors, has led to a Zacks Rank of 2 (Buy) for Vertiv, suggesting a positive outlook for the stock [7] - The Buy-equivalent ABR for Vertiv can serve as a useful guide for investors, complementing the insights provided by the Zacks Rank [7]

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]

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 ...