Switch Stock Sinks on Earnings Miss, Guidance Cut

Switch (NYSE:SWCH) stock was down on Tuesday following the release of its earnings report for the second quarter of 2018.

Switch Stock Sinks on Earnings Miss, Guidance Cut

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Switch’s earnings report for the second quarter of the year includes earnings per share of 2 cents. This is a drop from the company’s earnings per share of 7 cents from the same time last year. It was also bad news for SWCH stock by coming in below Wall Street’s earnings per share estimate of 5 cents for the period.

Net income reported by Switch for the second quarter of 2018 came in at $9.54 million. The data center company’s net income from the second quarter of 2017 was $14.95 million.

During the second quarter of the year, Switch reported operating income of $15.83 million. This is down from the company’s operating income of $23.54 million that was reported in the same period of the year prior.

Switch also reported revenue of $102.16 million for the second quarter of 2018. This is an increase over its revenue of $92.10 million that was reported in the second quarter of the previous year. However, it was still a blow to SWCH stock by coming in below analysts’ revenue estimate of $110.31 million for the quarter.

Another bit of bad news for SWCH stock in its earnings report was a cut to its guidance for the full year of 2018. Switch says that it is now expecting revenue for the year to range from $405 million to $408 million. It’s previous guidance was for revenue between $423 million to $440 million. This will have it missing Wall Street’s revenue estimate of $428.30 million for the year.

SWCH stock was down 23% as of Tuesday morning and is down 18% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2018/08/switch-stock-sinks-on-earnings-miss/.

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