Shares of Switch (NYSE:SWCG) have gotten crushed today, down by 25% as of 12 p.m. EDT, after the company reported second-quarter earnings results. The data center infrastructure specialist missed relative to expectations and lowered guidance for 2018.
Revenue in the second quarter rose 11% to $102.2 million, which led to net income attributable to Switch of $821,000, or $0.02 per share. Analysts had been expecting revenue of $102.8 million and earnings per share of $0.04.
Switch posted adjusted EBITDA of $50.3 million for the quarter, and spent $99.4 million in capital expenditures. Churn declined to less than 0.1%. Switch's board also approved a $150 million share repurchase program.
Due to "several deals closing later than originally anticipated," Switch had to reduce its full-year outlook. Total revenue for 2018 is expected to be in the range of $405 million to $408 million, down from prior guidance of $423 million to $440 million in sales. That should result in adjusted EBITDA of $197 million to $200 million, down from the prior outlook of $216 million to $224 million.
"The logistics and timing required for customer implementation of our holistic cloud solution impacted our expectations for the year," President Thomas Morton said in a statement. "We firmly believe in the long-term growth prospects of our business, and that the unique and market defining solutions available only at the Switch PRIME campus ecosystems will establish our organization as the recognized pillar of enterprise hybrid cloud."
The company said enterprise customers are taking longer to "evaluate the design of their long-term deployments to take advantage of Switch's new program for enterprise hybrid cloud."