NYSE$VRT
Vertiv Holdings Co · Q2 2021 earnings
Q2 2021 earnings · · Investor relations
Briefing
Reported strong financial results with net sales growth and increased profitability.
Vertiv reported a strong second quarter with a 25% increase in net sales and a record backlog of $2.3 billion. The company raised its full year guidance for sales, adjusted operating profit, and adjusted diluted earnings per share.
- Diluted earnings per share increased $0.20 and adjusted diluted earnings per share increased $0.15 from last year’s second quarter.
- Net sales growth of 25% and organic net sales growth of 20% from last year’s second quarter, with double-digit sales growth in all regions.
- Record backlog of $2.3 billion at the end of June. Order growth of 24% compared to prior year’s second quarter.
- Operating profit increased $32 million, or 45%, and adjusted operating profit increased $31 million, or 30%, from last year’s second quarter. Adjusted operating margin of 10.6%, up 40 basis points.
Headline financials
Revenue & EPS history
Vertiv · Revenue · Quarterly
$1.26B
Revenue by segment
Vertiv · $977M total across 1 segment · Q2 2021
- Products$977M—100.0%
Forward guidance
End-market demand remains robust, and Vertiv is increasing its full year net sales guidance to 14% growth at the midpoint (12% organic growth). The company is raising the midpoint of its full year adjusted operating profit guidance to $600 million.
Tailwinds
- Increasing full year net sales guidance to 14% growth at the midpoint (12% organic growth).
- Raising the midpoint of full year adjusted operating profit guidance to $600 million.
- Implemented additional pricing actions to help offset inflation and supply-chain challenges.
- Fixed cost reductions to help offset inflation and supply-chain challenges.
- Expect pricing to ramp-up as we progress through 2021 and to completely offset gross material and freight inflation within the fourth quarter.
Headwinds
- Material inflation continues to be a challenge.
- Supply-chain challenges continue to be a challenge.
- The full year guidance includes the expected negative net impact in the remainder of the year of current commodity and freight costs.
- Price recovery typically lags inflation.
- Net cash provided by operating activities of $59 million in the second quarter was $14 million lower than last year’s second quarter, and free cash flow of $41 million was down $21 million in part due to incremental inventory investment in the second quarter in response to the challenging supply chain environment, the timing of cash tax payments and higher year-over-year investment in growth-related capital expenditures.
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q2 2021
+1.5%
Avg return
Earnings day
+2.5%
Avg return
5 days after
+7.7%
Avg return
30 days after
56%
18 / 32 earnings
Positive
+30.0%
Q2 2023
Best reaction
-36.7%
Q4 2021
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -2.1% | +3.2% | +4.8% | |
| Q4 2025 | +24.5% | +17.5% | +29.7% | |
| Q3 2025 | -2.0% | +10.4% | -8.6% | |
| Q2 2025 | +1.0% | -1.8% | -10.6% | |
| Q1 2025 | +8.5% | +20.0% | +45.0% | |
| Q4 2024 | -9.7% | -12.3% | -29.0% | |
| Q3 2024 | -2.2% | +1.0% | +24.6% | |
| Q2 2024 | -16.0% | -14.3% | -13.7% | |
| Q1 2024 | +14.1% | +19.7% | +34.1% | |
| Q4 2023 | +1.4% | +6.9% | +33.0% | |
| Q3 2023 | -10.7% | -1.9% | +9.4% | |
| Q2 2023 | +30.0% | +34.6% | +50.3% | |
| Q1 2023 | +18.5% | +21.2% | +61.4% | |
| Q4 2022 | +7.9% | +3.3% | -14.2% | |
| Q3 2022 | +4.7% | +1.3% | -2.8% | |
| Q2 2022 | +11.9% | +10.2% | -4.8% | |
| Q1 2022 | +10.6% | +9.3% | -0.9% | |
| Q4 2021 | -36.7% | -33.5% | -34.3% | |
| Q3 2021 | +6.9% | +8.3% | +7.2% | |
| Q2 2021 | +1.7% | +0.2% | +2.2% | |
| Q1 2021 | +0.7% | -1.1% | +7.5% | |
| Q4 2020 | -6.3% | -1.8% | -10.2% | |
| Q3 2020 | -1.8% | -4.0% | +12.2% | |
| Q2 2020 | +8.0% | +11.1% | +5.9% | |
| Q4 2019 | +3.4% | +8.5% | +31.5% | |
| Q1 2020 | -0.9% | -2.9% | +30.1% | |
| Q2 2019 | -16.4% | -31.9% | -13.7% | |
| Q3 2019 | +0.0% | -0.3% | +1.0% | |
| Q1 2019 | -0.3% | -0.3% | +0.1% | |
| Q4 2018 | +0.2% | +0.6% | +0.7% | |
| Q3 2018 | +0.5% | +1.2% | +1.3% | |
| Q2 2018 | -0.1% | -1.1% | -1.6% |
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