Vertiv beats Q3 revenue, profit estimates; raises FY guidance
Vertiv beats Q3 revenue, profit estimates; raises FY guidance
Overview
US critical digital infrastructure firm's Q3 revenue rose 61% yr/yr, beating analyst expectations
Adjusted EPS for Q3 grew 78% yr/yr, beating analyst expectations
Company raised full-year 2026 guidance for all key metrics
Outlook
Vertiv sees Q4 net sales of $4.31 bln to $4.51 bln
Company expects Q4 adjusted diluted EPS of $2.22 to $2.28
Vertiv raises 2026 net sales guidance to $14.45 bln-$14.85 bln
Result Drivers
ORGANIC GROWTH - Sales growth was driven by strong organic sales growth of 55% and a ~6% contribution from acquisitions, with growth reported across all regions
PRODUCTIVITY GAINS - Adjusted operating margin rose by 290 bps to 25.2%, attributed to manufacturing productivity and operational leverage on higher sales
OPERATING PROFIT - Higher adjusted operating profit contributed to increased free cash flow, partially offset by higher working capital and capital expenditures
Company press release: ID:nPn6KDrDPa
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $4.31 bln | $3.76 bln (23 Analysts) |
Q3 Adjusted EPS | Beat | $2.21 | $1.83 (23 Analysts) |
Q3 EPS |
| $1.95 |
|
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 29 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Vertiv Holdings Co is $330.00, about 58.2% above its October 27 closing price of $208.56
The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 44 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)