Vertiv NYSE:VRT, which supplies power and cooling infrastructure to data centers, fell 13.01% premarket after reporting second-quarter net sales of $3.27 billion, up 24% but short of the $3.38 billion analysts expected. Adjusted diluted earnings of $1.52 a share cleared the $1.42 consensus. The company put the revenue shortfall down to "minor timing shifts," citing temporary supply chain congestion and multi-phased project execution.
Adjusted operating profit rose 51% to $738.4 million and adjusted operating margin widened 410 basis points to 22.6%. Operating cash flow reached $1.1 billion and adjusted free cash flow $925.3 million, up 241% and 234% respectively. Vertiv ended the quarter in a net cash position with $5.6 billion of liquidity.
Guidance rose across every line. Vertiv now sees full-year net sales of $13.8 billion to $14.2 billion, adjusted operating profit of $3.285 billion to $3.365 billion, adjusted EPS of $6.65 to $6.75 and adjusted free cash flow of $2.4 billion to $2.6 billion. Third-quarter revenue is guided to $3.65 billion to $3.85 billion.