Zacks: Brokerages Expect Switch, Inc. (NYSE:SWCH) Will Announce Earnings of $0.05 Per Share


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Brokerages predict that Switch, Inc. (NYSE:SWCH) will announce earnings per share of $0.05 for the current quarter, according to Zacks Investment Research. Six analysts have made estimates for Switch’s earnings, with the highest EPS estimate coming in at $0.06 and the lowest estimate coming in at $0.05. Switch posted earnings per share of $0.04 during the same quarter last year, which suggests a positive year over year growth rate of 25%. The business is scheduled to report its next earnings results after the market closes on Friday, May 14th.

According to Zacks, analysts expect that Switch will report full-year earnings of $0.22 per share for the current fiscal year, with EPS estimates ranging from $0.18 to $0.26. For the next year, analysts forecast that the business will report earnings of $0.24 per share, with EPS estimates ranging from $0.15 to $0.32. Zacks’ EPS averages are a mean average based on a survey of research analysts that follow Switch.

Switch (NYSE:SWCH) last announced its quarterly earnings data on Sunday, February 28th. The company reported $0.05 EPS for the quarter, hitting the Zacks’ consensus estimate of $0.05. Switch had a return on equity of 2.90% and a net margin of 2.60%. The business had revenue of $127.75 million during the quarter, compared to the consensus estimate of $131.36 million. During the same period in the previous year, the company posted $0.04 earnings per share. The business’s revenue for the quarter was up 6.0% on a year-over-year basis.

Several equities research analysts recently weighed in on SWCH shares. William Blair restated an “outperform” rating on shares of Switch in a research note on Tuesday, March 2nd. Jefferies Financial Group upgraded Switch from a “hold” rating to a “buy” rating and boosted their target price for the stock from $18.00 to $22.00 in a research note on Wednesday, January 13th. Truist started coverage on Switch in a research note on Tuesday, February 2nd. They set a “buy” rating and a $24.00 target price for the company. Finally, Raymond James restated an “outperform” rating and set a $19.00 target price (down previously from $24.00) on shares of Switch in a research note on Monday, March 8th. One analyst has rated the stock with a sell rating and nine have given a buy rating to the company’s stock. The company presently has a consensus rating of “Buy” and a consensus target price of $21.28.

In other news, CEO Rob Roy sold 89,797 shares of the company’s stock in a transaction that occurred on Monday, January 11th. The stock was sold at an average price of $16.09, for a total transaction of $1,444,833.73. Following the completion of the sale, the chief executive officer now owns 765,452 shares in the company, valued at $12,316,122.68. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, Director Thomas A. Thomas sold 15,660 shares of the company’s stock in a transaction that occurred on Thursday, January 21st. The stock was sold at an average price of $16.55, for a total value of $259,173.00. Following the sale, the director now owns 2,159,659 shares of the company’s stock, valued at approximately $35,742,356.45. The disclosure for this sale can be found here. 30.52% of the stock is currently owned by insiders.

Several institutional investors have recently added to or reduced their stakes in the company. Public Employees Retirement System of Ohio raised its stake in shares of Switch by 3.4% during the third quarter. Public Employees Retirement System of Ohio now owns 34,067 shares of the company’s stock worth $532,000 after purchasing an additional 1,122 shares during the last quarter. Coastal Investment Advisors Inc. raised its stake in shares of Switch by 14.2% during the fourth quarter. Coastal Investment Advisors Inc. now owns 13,912 shares of the company’s stock worth $228,000 after purchasing an additional 1,735 shares during the last quarter. HighTower Advisors LLC raised its stake in shares of Switch by 0.4% during the fourth quarter. HighTower Advisors LLC now owns 432,203 shares of the company’s stock worth $7,074,000 after purchasing an additional 1,925 shares during the last quarter. SG Americas Securities LLC raised its stake in shares of Switch by 37.7% during the fourth quarter. SG Americas Securities LLC now owns 10,237 shares of the company’s stock worth $168,000 after purchasing an additional 2,804 shares during the last quarter. Finally, DAVENPORT & Co LLC raised its stake in shares of Switch by 27.5% during the fourth quarter. DAVENPORT & Co LLC now owns 14,632 shares of the company’s stock worth $240,000 after purchasing an additional 3,155 shares during the last quarter. Institutional investors and hedge funds own 35.47% of the company’s stock.

SWCH stock traded down $0.16 during trading on Friday, hitting $17.32. 1,207,019 shares of the company’s stock were exchanged, compared to its average volume of 2,257,802. The business has a 50-day moving average price of $16.12 and a two-hundred day moving average price of $16.17. The stock has a market capitalization of $4.18 billion, a price-to-earnings ratio of 133.24 and a beta of 0.72. Switch has a 52-week low of $13.38 and a 52-week high of $19.99. The company has a current ratio of 1.57, a quick ratio of 1.57 and a debt-to-equity ratio of 1.71.

The company also recently disclosed a quarterly dividend, which was paid on Friday, March 26th. Shareholders of record on Tuesday, March 16th were paid a $0.05 dividend. This represents a $0.20 dividend on an annualized basis and a yield of 1.15%. The ex-dividend date of this dividend was Monday, March 15th. Switch’s dividend payout ratio is currently 133.33%.

About Switch

Switch, Inc, through its subsidiary, Switch, Ltd., provides colocation space and related services in the United States. It develops and operates data centers in Nevada, Michigan, and Georgia. The company serves technology and digital media companies, financial institutions, government agencies, and network and telecommunications providers, as well as cloud, IT, and software providers.

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Earnings History and Estimates for Switch (NYSE:SWCH)

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