Switch Results Miss Street, Cuts FY Outlook, Shares Plunge 18%
Shares of Switch Inc. (SWCH) plunged 18 percent on extended session after the company reported a second-quarter results that fell short of Wall Street estimates. The company also lowered its full-year revenue outlook.
Las Vegas-based Switch’s second-quarter profit dropped to $0.82 million or $0.02 per share from $14.95 million or $0.07 per share last year.
Revenues for the quarter grew 11 percent to $102.2 million from $92.1 million a year ago.
Analysts polled by Thomson Reuters estimated earnings of $0.04 per share and revenues of $102.76 million for the quarter. Analysts’ estimates typically exclude one-time items.
Looking forward to the full year, Switch expects revenues of $405 million to $408 million, down from prior outlook of $423 million to $440 million. Analysts currently estimate revenues of $428.30 million.
Switch closed Monday’s trading at $13.98, down $0.09 or 0.64%, on the NYSE. The stock further dropped $2.58 or 18.45% in the after-hours trade.
by RTTNews Staff Writer
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