Loading...
•
Mar 31, 2024
Vertiv Q1 2024 Earnings Report
Vertiv's Q1 2024 results reflected strong orders and sales growth, driven by AI demand.
Key Takeaways
Vertiv reported strong first-quarter results, with a 60% increase in organic orders and an 8% increase in net sales compared to the first quarter of 2023. The company's performance was driven by strong demand, particularly related to AI deployments, and improved execution. Vertiv is raising its full-year 2024 guidance, expecting net sales growth of 12% at the midpoint and adjusted operating profit of $1,325 to $1,375 million, a 28% increase at the midpoint compared to full year 2023.
Organic orders increased by 60% compared to Q1 2023, with a book-to-bill ratio of 1.5x.
Net sales reached $1,639 million, an 8% increase compared to Q1 2023.
Operating profit was $203 million, and adjusted operating profit was $249 million, up 42% from Q1 2023.
Share repurchases totaled $600 million in Q1 2024.
Vertiv
Vertiv
Vertiv Revenue by Segment
Vertiv Revenue by Geographic Location
Revenue by Segment
Products Revenue
CapyFin.comServices & Spares Revenue
CapyFin.comRevenue by Geographic Location
Americas Revenue
CapyFin.comAsia Pacific Revenue
CapyFin.comEMEA Revenue
CapyFin.com Forward Guidance
Vertiv is raising its full year 2024 guidance, expect net sales growth of 12% at the midpoint, operating profit of $1,150 to $1,200 million and adjusted operating profit of $1,325 to $1,375 million, a 28% increase at the midpoint compared to full year 2023
Positive Outlook
- Expect net sales growth of 11-13%
- Adjusted operating profit between $315M - $335M
- Adjusted operating margin between 16.7% - 17.1%
- Adjusted diluted EPS between $0.53 - $0.57
- The data center market continues to accelerate, including the deployment of high-performance compute
Challenges Ahead
- Information reconciling certain forward-looking GAAP measures to non-GAAP measures related to FY 2024 guidance, including organic net sales growth, adjusted operating margin and adjusted free cash flow, is not available without unreasonable effort due to high variability, complexity and uncertainty with respect to forecasting and quantifying certain amounts that are necessary for such reconciliations.
- For the same reasons, we are unable to compute the probable significance of the unavailable information, which could have a potentially unpredictable, and potentially significant, impact on our future GAAP financial results.
- Second Quarter 2024 Operating profit (loss) GAAP $282.0
- Second Quarter 2024 Net income (loss) GAAP $169.0
- Second Quarter 2024 Diluted EPS GAAP $0.44
Revenue & Expenses
Visualization of income flow from segment revenue to net income