Vertiv Holdings Co. (NYSE:VRT) delivered a strong second-quarter performance, surpassing Wall Street’s expectations for both earnings and revenue, leading the company to raise its full-year 2024 outlook.
The critical digital infrastructure solutions provider reported adjusted EPS of $0.67, exceeding the analyst consensus of $0.57. Quarterly revenue reached $1.95 billion, slightly above the anticipated $1.94 billion and representing a 13% year-over-year increase.
Vertiv’s impressive results were highlighted by a 57% year-over-year surge in organic orders and a 63% increase in operating profit. The company attributed its success to robust demand growth, effective operational execution, and a strong focus on operational excellence.
CEO Giordano Albertazzi expressed optimism about the company’s future, emphasizing Vertiv’s ability to leverage the scaling of AI deployment through its capacity and strategic investments.
The company’s adjusted operating margin improved significantly to 19.6%, up from the previous year, driven by increased volume, favorable price-cost dynamics, and productivity enhancements in manufacturing and procurement.
Looking ahead, Vertiv has raised its Q3 EPS guidance to $0.65-$0.69, above the consensus estimate of $0.63. Revenue guidance for the third quarter is projected to be between $1.94 billion and $1.99 billion, with the midpoint slightly below the consensus of $1.98 billion.
For the full year 2024, Vertiv now anticipates EPS to be in the range of $2.47 to $2.53, surpassing the consensus estimate of $2.39. The company has also increased its revenue guidance to between $7.59 billion and $7.74 billion, with the midpoint just under the consensus estimate of $7.69 billion.