Vertiv Holdings Co. (NYSE: VRT) reported Q1 EPS of $0.21, $0.09 better than the analyst estimate of $0.12. Revenue for the quarter came in at $1.1 billion versus the consensus estimate of $1.04 billion.

• Strong net sales growth of 22.4% and organic net sales growth of 19.5%(1) compared with last year’s first quarter - with strength in all regions.
• Orders up 21% versus last year’s first quarter fueling a record backlog of $2.1 billion.
• Operating profit of $80 million and adjusted operating profit of $112 million, with operating profit margin of 7.3% and adjusted operating profit margin of 10.2%. Adjusted operating margin 790 basis points higher than prior year first quarter.
• Net cash from operating activities of $61 million increased $255 million, and free cash flow of $43 million increased $246 million from prior year first quarter. Strong quarter-end liquidity of $1.1 billion.
• Earnings per share of $0.09 and adjusted earnings per share of $0.21 exceeding guidance.
• Vertiv raises full year 2021 net sales, adjusted operating profit and adjusted EPS guidance.

“On the basis of a very strong first quarter, Vertiv’s full year 2021 is off to a good start,” said Rob Johnson, Vertiv’s Chief Executive Officer. “During the period we generated strong sales, orders remained robust and we significantly expanded adjusted operating profit margins. Our approach to business remains sound as our ‘One Vertiv’ team around the world focuses on the needs and expectations of our customers, leverages innovation to introduce new marketplace solutions and consistently achieves favorable results across key facets of the value chain.”

Dave Cote, Vertiv’s Executive Chairman, added, “I continue to be encouraged by the opportunity in front of Vertiv and this quarter clearly demonstrates our ability to execute on this great opportunity. Vertiv is a great company, in a good industry and is able to differentiate with technology that focuses on solving real customer problems. The digitization of our economy will constantly create new applications and data that will support the long-term growth of the industry and of Vertiv.”

GUIDANCE:

Vertiv Holdings Co. sees Q2 2021 EPS of $0.22-$0.24, versus the consensus of $0.27. Vertiv Holdings Co. sees Q2 2021 revenue of $1.19-1.23 billion, versus the consensus of $1.15 billion.

Vertiv Holdings Co. sees FY2021 EPS of $1.08-$1.14, versus the consensus of $1.05. Vertiv Holdings Co. sees FY2021 revenue of $4.875-4.925 billion, versus the consensus of $4.79 billion.

In part due to our strong first quarter performance, we are increasing our full year 2021 adjusted operating profit guidance to $595 million (at the mid-point), $20 million higher than our previous guidance. This full year guidance includes the expected negative net impact in the remainder of the year of higher commodity and freight costs.

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