Vertiv Swings To Profit In Q3, Beats Estimates; Raises FY21 Guidance

(RTTNews) - Vertiv Holdings Co. (VRT), a provider of equipment and services for data centers, on Wednesday reported a turnaround to profit in the third quarter, supported by a rise in sales across the globe and lower operating expenses, particularly restructuring costs. On adjusted basis, earnings beat the Street view.

The firm also raised its revenue and earning guidance for the current fiscal, given the effects of E+I acquisition and also the divestiture of the heavy industrial UPS business.

The Ohio headquartered firm reported a net income of $56.2 million or $0.15 per share for the quarter ended in September, compared to a loss of $103.5 million or $0.32 per share, reported for the same period, last fiscal.

Excluding items, the American company posted its earnings at $73.3 million or $0.20 per share, against $16.7 million or $0.05 per share, recorded for the three-month period ended on September 30, 2020.

Nine analysts, on average, polled by Thomson-Reuters were estimating the business to report earnings per share at $0.19. Analysts' estimates typically exclude one-time items.

Amidst a positive momentum in the market, the operating profit of the firm moved up to $81.8 million for the thirteen-week period, from $35.1 million, posted year ago.

The hardware manufacturer generated it net sales at $1.22 billion for 90-day period, versus $1.16 billion, recorded for the September quarter of 2020.

Owing to higher demand for the Vertiv's products and service, it recorded revenues of $537.2 million, $394.6 million, and $297.1 million for the quarter, from Americas, APAC, and EMEA regions, respectively, compared to $532 million, $379.6 million, and $250.4 million.

Analysts', on average, had expected the firm to post a revenue of $1.23 billion for the September quarter.

For the full year, the company raised its earnings and revenue guidance. Now it expects its adjusted EPS in the range of $0.97 to $1.03, against its previous guidance range of $0.96 to $1.01. It also projects net sales in the range of $4.97 billion to $5.03 billion, versus its previous view of $4.88 billion to $4.94 billion.

For the upcoming quarter, Vertiv projects its adjusted EPS in the range of $0.24 to $0.30, and net sales in the range of $1.38 billion - $1.44 billion.

Analysts', on average, expect the company to report its net sales at $1.33 billion for the last three-month period of 2021, and $4.92 billion for the current fiscal.