Vertiv Holdings Beats Q2 Estimates, Raises FY21 Guidance

Vertiv Holdings Beats Q2 Estimates, Raises FY21 Guidance
  • Vertiv Holdings Co VRT reported second-quarter sales growth of 25.3% year-over-year to $1.26 billion, and 20.4% on an organic basis, beating the consensus of $2.21 billion.
  • Sales by segments: Americas $564.9 million (+16.5% Y/Y), APAC $398 million (+23.3% Y/Y) and EMEA $297.4 million (+50.1% Y/Y).
  • Adjusted EPS improved to $0.31 from $0.16 in 2Q20, beating the consensus of $0.24.
  • The operating profit increased by 44.8%Y/Y to $102.2 million, and the margin expanded by 110 bps to 8.1%. Adjusted operating margin expanded by 42 bps to 10.6%.
  • Vertiv generated a YTD operating cash flow of $120 million, compared to cash used of $121.7 million a year ago. Free cash flow of $84.2 million.
  • At the end of Q2, the company's backlog was $2.3 billion, with order growth of 24% Y/Y.
  • Q3 Outlook: Vertiv expects net sales of $1.26 billion - $1.3 billion, adjusted operating profit of $155 million and $165 million, and an adjusted operating margin of 12.3% - 12.8%. It expects an adjusted EPS of $0.26 - $0.30.
  • FY21 Outlook: The company expects net sales of $4.97 billion - $5.03 billion (up from prior guidance of $4.88 billion - $4.93 billion), with organic net sales growth of 11.5% - 12.5%.
  • It expects an Adjusted operating profit of $590 million - $610 million (up from prior guidance of $585M - $605M. Adjusted operating margin of 11.8% - 12.2%. Adjusted EPS of $1.12 - $1.18 (up from prior guidance of 1.08 - $1.14) and Free Cash Flow of $290M - $310M.
  • Price Action: VRT shares closed higher by 0.58% at $27.67 on Tuesday.

Posted In: BriefsEarningsNewsGuidance