Shares of Switch Inc. (SWCH, Financial) fell more than 20% after the company posted break-even third-quarter earnings per share on $102.8 million in revenue, reflecting 5.2% year-over-year growth. The company fell 3 cents short of earnings estimates, but revenue was in line with expectations.
Operating income fell from $25.5 million in the prior-year quarter to $12.5 million as a result of $7.6 million in equity-based compensation expenses and $6.1 million in additional depreciation.
Adjusted earnings before interest, taxes, depreciation and amortization were $50.9 million, up from $49.7 million last year. The adjusted EBITDA margin was 49.5%.
Further, the board of directors declared a cash dividend of 1.47 cents per share.Ă‚
The company maintained its projections for full-year results. Revenue is expected to be between $405 million and $408 million and adjusted EBITDA is anticipated to between $197 million and $200 million.
Shares of Resideo Technologies Inc. (REZI, Financial) jumped more than 4% on Wednesday after announcing third-quarter results. The company posted earnings of $2.53 per share on $1.2 billion in revenue, a 4.3% year-over-year increase. The company beat revenue expectations by $10 million.
Looking ahead, the company expects net sales for full-year 2018 in the range of $4.77 billion to $4.83 billion and pro forma adjusted EBITDA between $605 million and $615 million.
Disclosure:The author holds no positions in any stocks mentioned.
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