Key Takeaways
- Nvidia partner Vertiv reported a big jump in organic orders, lifting earnings and revenue above analysts’ estimates.
- CEO Giordano Albertazzi said the company benefited from demand for artificial intelligence.
- Vertiv boosted its outlook for full-year adjusted earnings per share and revenue.
Nvidia (NVDA) parter Vertiv (VRT) posted higher profit and sales as orders soared and it benefited from surging demand for artificial intelligence (AI).
The provider of products and services for data centers reported second-quarter adjusted earnings per share (EPS) of $0.67, with revenue rising 12.6% from a year ago to $1.95 billion. Both were above estimates.
Oraganic Orders Jump 57%
Organic orders, which exclude the impact of foreign exchange, jumped 57% year-over-year.
CEO Giordano Albertazzi said that the company has continued to see “increased scaling of AI deployment,” adding that Vertiv “has the capacity in place to seize this pivotal moment while continuing to invest in capacity for the future.”
The company boosted its full-year adjusted EPS guidance to $2.47 to $2.53, versus the previous $2.29 to $2.35. It anticipates revenue of $7.59 billion to $7.74 billion, up from its earlier outlook of a range of $7.54 billion to $7.69 billion.
Vertiv shares fell over 12% to $79.78 in intraday trading Wednesday following the release, cooling after a torrid year that saw shares more than triple in value over the last twelve months.
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