Switch reports second-quarter earnings miss, lowers guidance

Switch Inc (NYSE:SWCH) reported a sharp miss on earnings and lowered  guidance for the year, causing shares of the data operator to plunge sharply in after-hours trading.

The company said it had a profit of US$0.02, compared with the consensus expectation of US$0.04. Revenue came in at US$102.2mln, below the expected US$102.76mln.

Switch said as a result of a number of deals closing later than expected, it cut its estimate for full-year sales to US$405mln to US$408mln, against an earlier estimate of US$423mln to US$440mln.

READ: Switch IPO raises about US$531.3mln making it the third-biggest US technology listing this year

Shares of the company dropped 18% to US$11.43, having closed on Monday at US$13.98mln.

The company signed over 550 contracts with new and existing customers. 

Based in Las Vegas, Nevada, Switch is a technology infrastructure company.

Story by ProactiveInvestors