Zacks: Brokerages Expect Switch Inc (SWCH) to Post $0.03 Earnings Per Share

Brokerages expect that Switch Inc (NYSE:SWCH) will announce earnings of $0.03 per share for the current fiscal quarter, according to Zacks. Six analysts have made estimates for Switch’s earnings. The highest EPS estimate is $0.03 and the lowest is $0.02. Switch posted earnings of ($0.47) per share during the same quarter last year, which would indicate a positive year over year growth rate of 106.4%. The company is scheduled to issue its next quarterly earnings report on Monday, April 1st.

On average, analysts expect that Switch will report full year earnings of $0.08 per share for the current year, with EPS estimates ranging from $0.05 to $0.10. For the next year, analysts expect that the business will post earnings of $0.14 per share, with EPS estimates ranging from $0.12 to $0.16. Zacks Investment Research’s EPS calculations are an average based on a survey of sell-side research analysts that follow Switch.

Switch (NYSE:SWCH) last announced its quarterly earnings results on Tuesday, November 13th. The company reported $0.02 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.03 by ($0.01). Switch had a negative return on equity of 1.84% and a negative net margin of 16.29%. The firm had revenue of $102.80 million during the quarter, compared to analysts’ expectations of $102.84 million. During the same period in the previous year, the company posted $0.08 earnings per share. The company’s quarterly revenue was up 5.2% compared to the same quarter last year.

SWCH has been the topic of a number of recent analyst reports. Credit Suisse Group set a $14.00 price target on shares of Switch and gave the stock a “buy” rating in a report on Wednesday, November 14th. BMO Capital Markets reissued a “buy” rating and issued a $20.00 price target on shares of Switch in a report on Monday, August 13th. Stifel Nicolaus lowered their price target on shares of Switch from $15.00 to $13.00 and set a “buy” rating on the stock in a report on Tuesday, August 14th. William Blair reissued an “outperform” rating on shares of Switch in a report on Tuesday, November 13th. Finally, Raymond James downgraded shares of Switch from an “outperform” rating to a “market perform” rating and set a $17.00 price target on the stock. in a report on Monday, August 13th. One analyst has rated the stock with a sell rating, five have given a hold rating and seven have given a buy rating to the company’s stock. Switch presently has a consensus rating of “Hold” and an average price target of $14.90.

Shares of Switch stock traded down $0.07 on Friday, reaching $7.27. The stock had a trading volume of 1,460,800 shares, compared to its average volume of 1,108,061. Switch has a 1 year low of $7.00 and a 1 year high of $18.57. The company has a debt-to-equity ratio of 0.87, a current ratio of 1.50 and a quick ratio of 1.50.

The company also recently declared a quarterly dividend, which was paid on Thursday, December 6th. Stockholders of record on Monday, November 26th were issued a $0.0147 dividend. This represents a $0.06 dividend on an annualized basis and a dividend yield of 0.81%. The ex-dividend date was Friday, November 23rd.

In related news, Director Donald D. Snyder sold 50,000 shares of the company’s stock in a transaction that occurred on Tuesday, December 4th. The shares were sold at an average price of $7.25, for a total value of $362,500.00. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, major shareholder Intel Capital Corp sold 1,727,555 shares of the company’s stock in a transaction that occurred on Thursday, September 20th. The stock was sold at an average price of $10.98, for a total transaction of $18,968,553.90. The disclosure for this sale can be found here. 12.64% of the stock is currently owned by corporate insiders.

Hedge funds have recently bought and sold shares of the stock. Nisa Investment Advisors LLC bought a new position in shares of Switch in the second quarter worth approximately $103,000. First Republic Investment Management Inc. bought a new position in shares of Switch in the second quarter worth approximately $157,000. Sustainable Insight Capital Management LLC bought a new position in shares of Switch in the second quarter worth approximately $173,000. Baird Financial Group Inc. bought a new position in shares of Switch in the second quarter worth approximately $193,000. Finally, Jane Street Group LLC increased its position in shares of Switch by 134.9% in the second quarter. Jane Street Group LLC now owns 29,210 shares of the company’s stock worth $355,000 after purchasing an additional 16,776 shares during the last quarter. Institutional investors own 19.08% of the company’s stock.

Switch Company Profile

Switch, Inc, through its subsidiary, Switch, Ltd., provides colocation space and related services to technology and digital media companies, cloud and managed service providers, financial institutions, and telecommunications providers that conduct critical business on the Internet. The company develops and operates data centers in Nevada, Michigan, and Georgia.

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