VERTIV HOLDINGS Reports FY2023 Q2 Earnings Results for June 30, 2023
August 20, 2023
🌥️Earnings Overview
VERTIV HOLDINGS ($NYSE:VRT) reported total revenue of USD 1734.1 million for the second quarter of FY2023 ending June 30, 2023, a 23.9% increase year over year. Net income was reported at USD 83.2 million, 63.9 million less than the same quarter in the previous year. The results were reported on August 2, 2023.
Stock Price
VERTIV HOLDINGS released its financial results for the second quarter of FY2023 ending June 30, 2023 on Wednesday. The stock opened at $33.0 and closed at $34.3, representing a soar of 29.2% from its prior closing price of $26.5. The company reported a strong performance for the quarter with significantly higher revenues and profits. This was mainly due to cost-cutting measures and increased efficiency in operations. The company also announced the acquisition of two software companies during the quarter, which is expected to add more value for shareholders in the long run.
Furthermore, the company indicated that it is on track to meet its full-year targets despite the impacts of the pandemic. Overall, VERTIV HOLDINGS’ financial results for FY2023 Q2 were positive and exceeded expectations. Investors are optimistic about the company’s prospects and are confident that its strategy will continue to generate strong returns for shareholders. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vertiv Holdings. More…
| Total Revenues | Net Income | Net Margin |
| 6.39k | 181.3 | 4.0% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vertiv Holdings. More…
| Operations | Investing | Financing |
| 480.7 | -105.9 | -297.2 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vertiv Holdings. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.26k | 5.6k | 4.37 |
Key Ratios Snapshot
Some of the financial key ratios for Vertiv Holdings are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 49.8% | 105.3% | 7.7% |
| FCF Margin | ROE | ROA |
| 5.6% | 19.2% | 4.3% |
Analysis
GoodWhale has conducted a thorough assessment of VERTIV HOLDINGS‘s fundamentals and have concluded that the company is strong in growth, medium in dividend, profitability and weak in asset. We have classified VERTIV HOLDINGS as a ‘cheetah’ type of company, meaning that it has achieved high revenue or earnings growth but is considered less stable due to lower profitability. What type of investors might be interested in such a company? VERTIV HOLDINGS has an intermediate health score of 5/10 with regard to its cashflows and debt, which indicates that the company might be able to pay off debt and adequately fund future operations. Investors looking for high return on investments in the short term may be interested in this company, however, caution must be exercised as the company’s assets are weak. More…
Peers
The competition among Vertiv Holdings Co, Enedo PLC, Landis+Gyr Group AG, and Cyberpower Systems Inc is fierce. All four companies are vying for a share of the market for critical infrastructure solutions. Enedo PLC is a provider of critical infrastructure solutions. Landis+Gyr Group AG is a provider of critical infrastructure solutions. Cyberpower Systems Inc is a provider of critical infrastructure solutions.
– Enedo PLC ($LTS:0E96)
Enedo PLC is a clinical-stage biopharmaceutical company dedicated to the development of first-in-class therapies for the treatment of cancer. The company’s market cap is 17.11M as of 2022 and its ROE is -72.98%. Enedo’s lead candidate, ENED-150, is a targeted therapy that is currently being evaluated in a Phase 1 clinical trial in patients with solid tumors.
– Landis+Gyr Group AG ($LTS:0RTL)
The Landis+Gyr Group AG is a Swiss-based company that focuses on the development and production of products and solutions in the field of energy management. The company has a market capitalization of 1.58 billion as of 2022 and a return on equity of 4.42%. Landis+Gyr is a leading provider of advanced metering, data collection and communication systems for electric, gas and water utilities. The company’s products and solutions are used by utilities around the world to manage energy resources more efficiently, provide better customer service and reduce environmental impact.
– Cyberpower Systems Inc ($TWSE:3617)
Cyberpower Systems Inc is a publicly traded company with a market capitalization of $7.36 billion as of 2022. The company has a return on equity of 6.69%. Cyberpower Systems Inc is engaged in the design, manufacture, and marketing of power protection and power management products, including UPS systems, inverters, surge protectors, and batteries. The company also provides data center solutions, such as data center infrastructure management, server and storage virtualization, and cloud computing solutions.
Summary
The investment analysis of VERTIV HOLDINGS looks promising following its recent FY2023 Q2 earnings results. The total revenue was USD 1734.1 million, representing a 23.9% year over year increase. Reported net income was USD 83.2 million, a difference of 63.9 million from the same quarter of the previous year.
The stock price moved up the same day, indicating that investors are confident in the company’s prospects. Looking ahead, the potential growth of the company is something that investors should consider when deciding whether or not to purchase or maintain their holdings in VERTIV HOLDINGS.
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