Switch Shares Shoots Higher On Q2 Results, Business Updates

Switch Inc SWCH disclosed multiple shareholder value initiatives to support its technology and innovative infrastructure strategy.
The technology infrastructure company will evaluate the REIT election and review its operational and financial targets.
Elliott Investment Management L.P., the largest Class A investor with an 11% economic interest, has collaborated with Switch on the initiatives. Eliot Portfolio Manager Jason Genrich is likely to join Switch's board.
Switch announced expansion into a Fifth Prime campus in Texas named The Rock. An additional 1.3 million square feet is likely to open between now and early 2023, with another 1.9 million square feet in the development pipeline through 2026.
The Keep Campus, totaling 1.3 million gross square feet and up to 160 megawatts of power at full build-out.
The five data centers will likely provide 1.9 million incremental square feet and over 200 megawatts of power on completion.
Switch's Q2 revenue of $141.7 million beats the analyst consensus of $135.5 million.
The Q2 revenue growth of 12% year over year, excluding a $3.3 million revenue contribution from Data Foundry, represented a 9% increase Y/Y.
The Q2 EPS of $0.04 was short of the analyst consensus of $0.05.
It commenced building the pre-existing three-megawatt data hall in its Austin location, ready for customer deployments in Q4 of 2021.
Switch completed a multi-year expansion order with an existing global logistics customer for incremental colocation and telecommunication services in The Core Campus and Keep Campus.
It signed an initial order worth $6 million with a multinational producer of specialty glass and ceramics materials used for industrial and scientific applications.
An existing Fortune 500 semiconductor firm agreed to accelerate and upsize its committed ramp in The Citadel Campus leading to an additional $3.5 million of the contract value.
Outlook: Switch sees FY21 revenue between $566 million - $574 million above the analyst consensus of $555.9 million.
Price action: SWCH shares traded higher by 24.1% at $25.20 in the premarket session on the last check Friday.

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Switch Shares Shoots Higher On Q2 Results, Business Updates