Strong Q3 For Vertiv: Revenue Rises 19%, But Stock Takes A Hit
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 23 2024
0mins
Should l Buy VRT?
Source: Benzinga
Third Quarter Performance: Vertiv Holdings Co reported a 19% year-over-year increase in net sales to $2.074 billion, exceeding expectations, with adjusted operating profit rising 41% to $417 million and adjusted EPS at $0.76, surpassing the consensus of $0.69.
Future Outlook: The company raised its FY24 revenue guidance to $7.78-$7.83 billion and expects fourth-quarter revenue between $2.115 billion and $2.165 billion, while projecting organic sales growth to accelerate beyond 14% in 2025.
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Analyst Views on VRT
Wall Street analysts forecast VRT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VRT is 206.07 USD with a low forecast of 195.00 USD and a high forecast of 230.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
17 Analyst Rating
15 Buy
2 Hold
0 Sell
Strong Buy
Current: 177.750
Low
195.00
Averages
206.07
High
230.00
Current: 177.750
Low
195.00
Averages
206.07
High
230.00
About VRT
Vertiv Holdings Co. is a global provider of critical digital infrastructure. It provides mission-critical digital infrastructure technologies and lifecycle services primarily for data centers, communication networks, and commercial and industrial environments. Its offerings include alternate current (AC) and direct current (DC) power management products, switchgear and busbar products, thermal management products, integrated rack systems, modular solutions, management systems for monitoring and controlling digital infrastructure, and services. Its business segments include Americas, Asia Pacific, and Europe, Middle East & Africa. The Americas segment includes products which include AC and DC power management, thermal management, low/medium voltage switchgear, busbar, integrated modular solutions, racks, single phase UPS, rack power distribution, rack thermal systems, configurable integrated solutions, energy storage solutions, hardware, and software for managing I.T. equipment.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Growing Market Demand: As AI data centers expand, Vertiv's thermal management solutions are seeing a significant increase in demand, which is expected to drive revenue growth and enhance market share.
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- Service Portfolio Advantage: The company's offerings in predictive analytics, remote monitoring, and energy optimization, supported by over 4,400 engineers globally, help build customer loyalty and unlock recurring revenue potential.
- Increased R&D Investment: Vertiv anticipates a more than 20% increase in engineering and R&D spending by 2026 to upgrade its liquid-cooling solutions, addressing the increasingly complex thermal requirements of AI workloads.
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- Liquid Cooling System Upgrade: The company is focusing on upgrading its liquid cooling portfolio to meet rising demands from denser server racks and complex thermal management needs, ensuring efficient data center operations and reducing risks of overheating and performance degradation.
- Service Advantages: Vertiv offers predictive analytics, remote monitoring, and energy optimization services, supported by a global network of over 4,400 engineers, which become significant competitive advantages as AI workload complexity increases, helping to build customer loyalty and unlock recurring revenue potential.
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