NYSE$VRT

Vertiv Holdings Co · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Vertiv's Q3 2023 performance was marked by strong sales growth, increased profitability, and positive cash flow, driven by robust market demand and operational execution.

Vertiv reported strong third-quarter results, exceeding expectations with net sales of $1,743 million, an 18% increase compared to the previous year. The company raised its full-year 2023 guidance for operating profit and adjusted free cash flow, driven by strong market demand and operational execution.

  • Net sales reached $1,743 million, an 18% increase compared to Q3 2022, with organic net sales growth of 17%.
  • Orders increased by 11% year-over-year, resulting in a record-high backlog of $5.0 billion.
  • Operating profit increased to $251 million, and adjusted operating profit reached $296 million, exceeding the high end of the guidance range by $36 million.
  • Adjusted operating margin expanded by 790 basis points to 17.0% compared to Q3 2022.

Headline financials

Total Revenue

$1.74B

Previous: $1.48B+17.7%
EPS (adj)

$0.52

Previous: $0.23+126.1%
Organic Orders Growth

11.0%

Previous: 20.1%-45.3%
Operating Margin

17.0%

Previous: 5.4%+214.8%
Capital Expenditures

-$80.1M

Previous: -$61.7M-29.8%
Free Cash Flow

$14M

Previous: -$40.5M+134.6%
Net Income

$94.1M

Previous: $21.2M+343.9%
Operating Income

$251M

Previous: $80M+213.6%
Gross Profit

$628M

Previous: $429M+46.2%
Cash & Equivalents

$500M

Previous: $258M+93.8%
Total Assets

$7.41B

Previous: $6.83B+8.6%
Stock-Based Comp

$6.5M

Previous: $6.3M+3.2%

Revenue & EPS history

Vertiv · Revenue · Quarterly

$1.74B

Q3 2023+17.7%vs Q3 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Vertiv · $1.38B total across 1 segment · Q3 2023

  • Products
    $1.38B+21.7%

Forward guidance

Full year financial guidance has been increased across all financial metrics. Fourth Quarter 2023 GuidanceNet sales$1,828M - $1,853MOrganic net sales growth(2)10.7% - 12.2%Adjusted operating profit(1)$295M - $305MAdjusted operating margin(2)15.9% - 16.7%Adjusted diluted EPS(1)$0.48 - $0.52Adjusted free cash flow(2)$127M - $177M

Tailwinds

  • Net sales between $1,828M and $1,853M
  • Organic net sales growth between 10.7% and 12.2%
  • Adjusted operating profit between $295M and $305M
  • Adjusted operating margin between 15.9% and 16.7%
  • Adjusted diluted EPS between $0.48 and $0.52

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 Q3 2023

Historical avgQ3 2023

+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

Earnings price reactions
QuarterReport dateReaction (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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