What happened
Shares of Switch (SWCH) have gotten crushed today, down by 16% as of 12:20 p.m. EDT, after the data center specialist reported fourth-quarter earnings. Net losses were worse than expected.
So what
Revenue in the fourth quarter came in at $99.3 million, which was just slightly shy of the $99.6 million in sales that analysts were modeling for. That translated into a non-GAAP net loss of $0.47 per share, which was much worse than the consensus estimate of $0.22 per share in adjusted losses. On a GAAP basis, Switch lost $2.09 per share.
Image source: Switch.
Adjusted EBITDA was $51.1 million and capital expenditures came in at $118.6 million during the quarter.
Now what
"Switch achieved another year of revenue growth as it continued to expand its presence and grow its customer base, while advancing its role in sustainability," CEO Rob Roy said in a statement. "With our innovative, patent-protected technology, we believe Switch is highly differentiated, decidedly competitive and unrivaled in our expansion capacity."
The company declared a cash dividend of $0.0147 per share to be payable to shareholders of record as of April 13. In terms of guidance for 2018, Switch expects total revenue for the year to be in the range of $423 million to $440 million, with adjusted EBITDA of $216 million to $224 million. Capital expenditures for 2018 should be $260 million to $310 million.
