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Vertiv shares climbed about 14 percent on Oct. 28 after the power and cooling supplier beat Wall Street estimates and raised its full-year outlook. Vertiv reported third-quarter net sales of $4.31 billion, up 61 percent from a year earlier, and said organic orders more than doubled.
Featured: Wide perspective of data center infrastructure illustrating the physical scale of power and cooling deployments.
The stock closed the session 16.5 percent higher, below its May 14 closing high of $376.23, according to Trefis.
Adjusted diluted earnings per share reached $2.21, ahead of the $1.82 that analysts expected, and revenue beat the $3.76 billion consensus, according to Yahoo Finance. Adjusted operating margin was 25.2 percent, up 290 basis points from a year earlier, and adjusted free cash flow rose 50 percent to $652 million. Reports of the session gain ranged from about 14 percent to 16.5 percent as the stock moved through the day. Schaeffer's Investment Research called it the best single-session gain since a 24.5 percent post-earnings jump on Feb. 11, after the shares closed at eight-month lows the previous Friday.
Sales rose in all three regions. The Americas grew 75 percent, Asia Pacific 50 percent and Europe, the Middle East and Africa 23 percent. Vertiv raised full-year net sales guidance to $14.45 billion to $14.85 billion from $13.8 billion to $14.2 billion, and lifted adjusted diluted earnings per share guidance to $7.10 to $7.20, up 69 to 71 percent.
"We are in the middle of the largest infrastructure buildout and it's accelerating," said Giordano Albertazzi, Vertiv's chief executive. "To paraphrase Mark Twain, the rumors of our demise have been greatly exaggerated," said Dave Cote, Vertiv's executive chairman, on the earnings call, according to a call transcript. Cote added that Vertiv does not plan to share orders data going forward.
Vertiv is adding manufacturing capacity against that demand. Its Nové Mesto nad Váhom plant in Slovakia is adding 22,000 sqm over two years, its power facilities in Ireland are scaling up, and a new factory in Johor, Malaysia, is operational. The company also closed the acquisitions of UtilityInnovation Group and King Environmental Services during the quarter.
Reference designs that Vertiv built with Nvidia are in use at the first 41 MW phase of Polar DC's Herøya campus in Norway, which the company says can scale to 100 MW. EdgeConneX uses Vertiv as its powertrain, thermal and services partner for gigawatt-scale deployments. Baxtel tracks more than 5,400 data center facilities across the United States, operated by 823 providers, and its US market data shows power capacity up 151 percent since 2022.
Vertiv guides to fourth-quarter net sales of about $4.4 billion at the midpoint, up 53 percent, with organic growth of about 50 percent.
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