Switch stock plunges 19% after earnings miss, lower guidance
Switch Inc. shares plunged 19% in the extended session Monday after the company missed Wall Street earnings estimates and lowered its guidance for the year. The company reported second-quarter net income attributable to Switch of $821,000, or 2 cents a share, compared with $14.9 million, or 7 cents a share, in the year-ago period. Revenue rose to $201.2 million from $92.1 million in the year-ago period. Analysts surveyed by FactSet had estimated earnings of 4 cents a share on revenue of $102.8 million. For the third quarter, analysts expect earnings of 5 cents a share on sales of $110.3 million. Switch said that as a result of several deals closing later than originally anticipated, it was lowering its full year guidance to sales of $405 million to $408 million from $423 million to $440 million. Switch stock has fallen 23% this year, as the S&P 500 index has gained 6%.
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