Shares of Vertiv Holdings soared by over 25% following the release of its impressive second-quarter results and an upgraded full-year outlook. The stock surged to $33.74 per share during morning trading, marking a 27.2% increase. Year-to-date, shares have already risen by an outstanding 146%.
Based in Columbus, Ohio, Vertiv Holdings specializes in manufacturing a wide range of digital-infrastructure tools used by data center operators. The company's product offerings include power distribution and thermal management solutions. CEO Giordano Albertazzi highlighted the significant role that artificial intelligence will continue to play in driving the company's growth.
Vertiv Holdings reported second-quarter sales of $1.73 billion, representing a remarkable 24% increase compared to the previous year's figures. These results surpassed analysts' expectations of $1.62 billion, as reported by FactSet. Earnings for the quarter amounted to $83.2 million, or 22 cents per share, up from $20.3 million, or 5 cents per share, in the same period last year. Adjusted earnings per share reached 46 cents, exceeding analysts' estimates of 29 cents.
Chairman Dave Cote expressed his enthusiasm regarding the company's performance, stating, "Momentum clearly accelerated in the second quarter as Vertiv continues to strengthen performance."
In light of their strong Q2 results, Vertiv Holdings revised its full-year sales outlook, now anticipating a range of $6.71 billion to $6.91 billion compared to the previous projection of $6.45 billion to $6.6 billion. Additionally, the company raised its adjusted earnings per share forecast for the year from $1.22 to $1.32 to $1.54 to $1.64. Vertiv also increased its adjusted free cash flow outlook, which is now expected to range between $525 million and $575 million, up from the previous estimate of $300 million to $400 million.