NYSE$VRT

Vertiv Holdings Co · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Vertiv reported strong Q4 2020 operating performance with net sales growth and increased adjusted EBITDA margin.

Vertiv reported an 11.4% increase in fourth-quarter net sales compared to the prior year, driven by strength in cloud, colocation, and telecommunication end markets. Net income for the quarter was $75 million, and adjusted EBITDA reached $187 million, with a 160 basis point increase in adjusted EBITDA margin. The company's quarter-end liquidity stood at $964 million, benefiting from a public warrant redemption.

  • Net sales increased by 11.4% compared to the prior year fourth quarter.
  • Organic sales grew by 9.5%.
  • Net income was $75 million.
  • Adjusted EBITDA was $187 million, with a margin of 14.3%.

Headline financials

Total Revenue

$1.31B

No prior period
EPS (adj)

$0.33

Previous: -$0.29+213.8%
Organic Orders Growth

9.0%

No prior period
Operating Margin

14.3%

Previous: 12.7%+12.6%
Capital Expenditures

$23.1M

Previous: $19.7M+17.3%
Free Cash Flow

$175M

Previous: -$17.7M+1090.2%
Net Income

$74.9M

Previous: -$33.9M+320.9%
Operating Income

$95.1M

Previous: $206M-53.9%
Gross Profit

$427M

Previous: -$784M+154.5%
Cash & Equivalents

$535M

Previous: $224M+139.2%
Total Assets

$5.07B

Previous: $4.66B+8.9%
Stock-Based Comp

$6M

No prior period

Revenue & EPS history

Vertiv · Revenue · Quarterly

$1.31B

Q4 2020
Beat estimate in 7 of 10 quarters(70%)
ActualEstimate

Revenue by segment

Vertiv · $1.02B total across 1 segment · Q4 2020

  • Products
    $1.02B

Forward guidance

Full year 2021 guidance includes net sales in the range of $4,750 million to $4,800 million, organic net sales growth of 6.5% to 7.5% and adjusted diluted earnings per share of $1.01 to $1.06. Adjusted operating profit guidance of $565 million to $585 million, up 68% at the mid-point of guidance compared to full year 2020.

Tailwinds

  • Net sales in the range of $4,750 million to $4,800 million
  • Organic net sales growth of 6.5% to 7.5%
  • Adjusted diluted earnings per share of $1.01 to $1.06
  • Adjusted operating profit guidance of $565 million to $585 million
  • Adjusted operating profit guidance up 68% at the mid-point of guidance compared to full year 2020

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 Q4 2020

Historical avgQ4 2020

+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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