Vertiv Holdings Co. (NYSE:VRT) reported a robust second quarter, with earnings and revenue exceeding Wall Street expectations, prompting the company to raise its full-year 2024 outlook. The results pushed the company's shares more than 4% higher premarket.
The provider of critical digital infrastructure solutions posted adjusted earnings per share (EPS) of $0.67, surpassing the analyst consensus of $0.57. Revenue for the quarter reached $1.95 billion, marginally higher than the expected $1.94 billion and marking a 13% increase from the same quarter last year.
The company's strong performance, highlighted by a 57% year-over-year (YoY) surge in organic orders and a 63% increase in operating profit, has led to a positive market response, with the stock climbing 4.1%.
Vertiv attributes its success to demand growth, operational execution, and a focus on operational excellence.
Vertiv's CEO Giordano Albertazzi expressed confidence in the company's ability to capitalize on the scaling of AI deployment, citing Vertiv's capacity and investments in future growth.
The company's adjusted operating margin expanded to 19.6%, a significant improvement from the previous year, driven by increased volume, favorable price-cost, and productivity gains in manufacturing and procurement.
Looking ahead, Vertiv anticipates continued strong performance and has raised its third-quarter EPS guidance to $0.65-$0.69, with the midpoint above the consensus of $0.63. Revenue guidance for the third quarter is set at $1.94-1.99 billion, with the midpoint slightly below the consensus of $1.98 billion.
For the full year 2024, the company now expects EPS to be between $2.47 and $2.53, with the midpoint above the consensus of $2.39. Revenue guidance has been increased to a range of $7.59-7.74 billion, with the midpoint just below the consensus of $7.69 billion.
Executive Chairman Dave Cote highlighted the significant demand growth and Vertiv's commitment to operational excellence as key factors in the company's robust cash flow and profitability, which are propelling it toward a long-term target of over 20% adjusted operating margin.