Data center company Switch gains after posting 4Q earnings that beat Wall Street estimates

Switch Inc (NYSE:SWCH) rallied in Tuesday’s extended trading after reporting fourth-quarter earnings that beat Wall Street estimates.

For the quarter, the data center company reported net income of $0.05 per diluted share on revenue of $103.2 million, compared with a loss of $2.09 on revenue of $99.3 million a year earlier. The average forecast of economists was for net income of $0.03 on revenue of $104.15 million.

Shares of the company climbed 13% to $10.19 in Tuesday’s after-hours trading.

READ: Switch reports second-quarter earnings miss, lowers guidance

Annual revenue increased 7% to $405.9 million from $378.3 million in 2017. Net income of $29.3 million compared with a loss of $8.6 million in the prior year, which included $71.3 million in non-recurring equity-based compensation expenses.

In 2019, the Las Vegas company said it will remain focused on supporting continued growth of its enterprise cloud business.

“Leveraging our best-in-class patented designs, we believe Switch remains uniquely positioned to capture an increasing share of enterprise colocation requirements as the hybrid cloud evolution continues,” Rob Roy, CEO, chairman and founder, said in a statement.

The company projected 2019 revenue of $436 million to $445 million, compared with the $449.89 million consensus of analysts.

Contact Dennis Fitzgerald at [email protected]
 

Story by ProactiveInvestors