Vertiv (VRT) Reports 12.6% Net Sales Increase

By Tamara Parker • Saturday, July 27 07:56 • Permanent Link

Vertiv Holdings Co has recently released its 10-Q report, providing an insight into its financial performance and operations. The company is a global leader in designing, manufacturing, and servicing critical digital infrastructure technologies for data centers, communication networks, and commercial and industrial environments. It offers a range of products and services under various brands, including Vertiv, Liebert, NetSure, Geist, E&I, Powerbar, and Avocent, catering to industries such as cloud services, financial services, healthcare, transportation, manufacturing, energy, education, government, social media, and retail.

In the 10-Q report, Vertiv reported a 12.6% increase in net sales for the second quarter of 2024 compared to the same period in 2023, reaching $1,952.8 million. The gross profit also surged by 24.8% to $741.2 million, driven by higher sales volumes. The company's selling, general, and administrative expenses increased by 11.1% to $363.8 million, primarily due to higher compensation costs and increased research and development expenses.

Moreover, the report highlighted a significant 63.3% increase in operating profit, reaching $336.0 million. However, the company experienced a 4.5% decrease in interest expense, net, amounting to $44.8 million. Income tax expense surged by 191.6% to $86.6 million, primarily due to increased business performance net of discrete tax benefits related to stock compensation.

The 10-Q report also detailed the company's efforts in capacity expansion, investment in artificial intelligence (AI) technology, and the expansion of its thermal management portfolio to meet growing customer demands. Additionally, it outlined the impact of foreign currency on sales and costs, as well as the change in fair value of warrant liabilities, providing a comprehensive overview of Vertiv's financial performance and key operational trends. Following these announcements, the company's shares moved 0.8%, and are now trading at a price of $77.12. For more information, read the company's full 10-Q submission here.

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