Vertiv shares sink as Q2 revenue miss offsets upgraded guidance

Investing.com -- Shares in Vertiv tumbled more than 9% in premarket trading Wednesday even as the data center equipment maker reported second-quarter earnings above estimates and raised its full-year guidance, with a revenue shortfall offseting the beat.

Vertiv posted second-quarter earnings per share of $1.52, beating the analyst estimate of $1.42. Revenue came in at $3.27 billion, reflecting 18% organic sales growth, but fell short of the $3.37 billion consensus.

Adjusted operating profit rose 51% from a year earlier, with the adjusted operating margin up 410 basis points to 22.6%.

Vertiv CEO Giordano Albertazzi said "demand for AI and general compute continues to intensify, and with each technology advancement, deployments grow more complex and more infrastructure-intensive."

"Our pipelines continue to strengthen as the market expands globally, giving us confidence to raise guidance and conviction in sustained, strong performance — this year and beyond," he added.

For the third quarter, Vertiv guided to EPS of $1.77-1.83, roughly in line with the $1.79 consensus, and revenue of $3.65-3.85 billion, compared to the $3.71 billion consensus. The company expects organic net sales growth of 34-36% and adjusted operating profit of $898-938 million, with an adjusted operating margin of 24-25%.

For the full year, Vertiv raised its guidance to EPS of $6.65-6.75, up from $6.30-$6.40 previously, and above the $6.48 consensus, and revenue of $13.8-14.2 billion, up from $13.5-14 billion, and above the $13.89 billion consensus.

The company guided to full-year organic net sales growth of 30-32% and adjusted operating profit of $3.29-3.37 billion, with an adjusted operating margin of 23.3-24.3%.

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