When Switch Inc. (NYSE: SWCH) released its second-quarter financial results after the markets closed on Monday, The company said that it had $0.03 in earnings per share (EPS) and $102.2 million in revenue. The consensus estimates had called for $0.04 in EPS and $102.76 million in revenue.
During this quarter, the company launched the Switch enterprise hybrid cloud program to enable enterprise adoption of the cloud and to facilitate clients’ transition into the hybrid cloud.
In the same time, Switch also signed over 550 contracts with new and existing customers, representing more than $165 million of total contract value and over 20MW committed. These contracts represent more than $40 million in annualized revenue at full deployment.
Looking ahead to the 2018 full year, the company expects to see revenues between $405 million and $408 million, down from the previous range of $423 million to $440 million. Also adjusted EBITDA is now expected to be $197 million to $200 million, compared to the prior range of $216 million to $224 million.
Consensus estimates call for $0.17 in EPS and $428.3 million in revenue for the 2018 full year.
Gabe Nacht, chief financial officer of Switch, commented:
We are pleased that our Board of Directors approved a $150 million Common Unit repurchase program, which underscores the Company’s commitment to shareholder value creation. With a strong balance sheet and long-term net leverage target of 3 to 4 times annualized Adjusted EBITDA, Switch can commit to a Common Unit repurchase program while we maintain the appropriate level of investment in future growth.
Shares of Switch closed Monday at $13.98, with a consensus analyst price target of $16.82 and a post-IPO range of $11.85 to $24.90. Following the announcement, the stock was down about 25% at $10.55 in early trading indications Tuesday.