Data center infrastructure provider Vertiv on Wednesday smashed analyst estimates for the second quarter and raised its full-year outlook. Vertiv stock rose on the news.
The Westerville, Ohio-based company earned an adjusted 95 cents a share on sales of $2.64 billion in the June quarter. Analysts polled by FactSet had expected Vertiv earnings of 83 cents a share on sales of $2.35 billion. On a year-over-year basis, Vertiv earnings increased 42% while sales rose 35%.
For the full year, Vertiv now expects to earn an adjusted $3.80 a share on sales of $10 billion. That's based on the midpoint of its guidance. Analysts had been modeling earnings of $3.58 a share on sales of $9.47 billion. Last year, Vertiv earned an adjusted $2.85 a share on sales of $8.01 billion.
For the third quarter, Vertiv forecast adjusted earnings of 97 cents a share on sales of $2.55 billion. Wall Street was looking for earnings of 97 cents a share on sales of $2.42 billion. In the year-earlier quarter, Vertiv earned an adjusted 76 cents a share on sales of $2.07 billion.
Vertiv provides power, cooling and other infrastructure for data centers, communication networks and commercial and industrial facilities.
"Vertiv's second-quarter performance demonstrates the strength of our market position and our ability to execute at scale," Chief Executive Giordano Albertazzi said in a news release. "Our 35% sales growth and robust orders momentum reflect both strong market demand and our expanded capabilities to serve our customers' increasingly complex infrastructure needs."
He added, "We are strategically investing in capacity expansion and accelerating our innovation pipeline to capitalize on unprecedented data center growth, particularly in AI-enabled infrastructure."
Vertiv Stock Is On IBD Lists
On the stock market today, Vertiv stock rose 1% to close at 144.17. Earlier in the session, it was up as much as 7.6% to 153.50. Shares decisively cleared a messy 131.38 handle buy point last week and are now approaching the all-time high of 155.84 set on Jan. 24.
Vertiv stock is on three IBD lists: IBD 50, Leaderboard and Big Cap 20.
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