Rackspace Hosting Earnings: Here’s Why Investors are Happy Now

Rackspace Hosting, Inc (NYSE:RAX) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 9.68%.

Rackspace Hosting, Inc Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 0% to $0.18 in the quarter versus EPS of $0.18 in the year-earlier quarter.

Revenue: Rose 17.87% to $376 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Rackspace Hosting, Inc reported adjusted EPS income of $0.18 per share. By that measure, the company beat the mean analyst estimate of $0.13. It beat the average revenue estimate of $372.25 million.

Key Stats (on next page)…