Vertiv Holdings Co. (NYSE: VRT) reported Q4 EPS of $0.22, $0.11 worse than the analyst estimate of $0.33. Revenue for the quarter came in at $1.31 billion versus the consensus estimate of $1.26 billion.

• Fourth quarter net sales growth of 11.4% versus prior year fourth quarter with continuing strength in cloud, colocation and telecommunication end markets, organic sales up 9.5%. Orders up 9% compared to prior year fourth quarter.
• Fourth quarter net income of $75 million and adjusted EBITDA of $187 million, with adjusted EBITDA margin percentage increasing 160 basis points to 14.3% from prior year’s fourth quarter.
• Quarter-end liquidity of $964 million includes benefit from public warrant redemption, which bolstered liquidity and reduced net leverage to 2.8x.

“We are pleased to report that Vertiv performed well in 2020,” said Rob Johnson, Vertiv’s Chief Executive Officer. “Our performance confirmed that our near and long-term business plans are sound; that Vertiv is positioned to create and deliver shareholder value; and that we have a clear path to accelerated growth. Not to be overlooked, we also demonstrated that the people of Vertiv around the world are extraordinary employees who blend talent with experience, focus with perseverance, and commitment with agility, all the while achieving business success even in the most challenging of times. We are so proud of the global Vertiv team.”

Johnson continued, “Our business success was shaped by and accomplished in the face of strong economic headwinds due to the continuing global pandemic, which pressured economies worldwide. It was a year that tested our business model and our ability to serve customers in an ever-changing and quickly growing digital marketplace. The Vertiv approach to business worked. We continued to deploy the Vertiv Operating System (VOS), we’ve increased velocity of our Vertiv Product Development (VPD) technology programs, all while keeping a sharp focus on costs. We are a company with solid organic growth, and we have made good progress in achieving significant margin expansion and healthy cash flow. We will remember 2020 for all the right reasons. We enabled people and businesses around the world to engage, communicate and share information. We were there to connect businesses, consumers and e-commerce, doctors and patients, families and loved ones. We will continue to be at the intersection of business, commerce and society for years to come. It’s what we do.”

Dave Cote, Vertiv’s Executive Chairman, added, “It was only about one year ago when Vertiv first appeared on the New York Stock Exchange as a listed company, positioned as a publicly traded, global leader and provider of critical digital infrastructure and continuity solutions. During the past year, our business culture strengthened and business metrics improved, marked by achievement-oriented people and teams, innovative thinking, sharp customer focus and a commitment to value creation for our shareholders.”

GUIDANCE:

Vertiv Holdings Co. sees Q1 2021 EPS of $0.09-$0.12, versus the consensus of $0.16. Vertiv Holdings Co. sees Q1 2021 revenue of $1.02-1.06 billion, versus the consensus of $1.04 billion.

Vertiv Holdings Co. sees FY2021 EPS of $1.01-$1.06, versus the consensus of $1.14. Vertiv Holdings Co. sees FY2021 revenue of $4.75-4.8 billion, versus the consensus of $4.64 billion.

For earnings history and earnings-related data on Vertiv Holdings Co. (VRT) click here.