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)…
Revenue increased 3.81% from $362.2 million in the previous quarter. EPS decreased 5.26% from $0.19 in the previous quarter.
Looking Forward: Analysts have a neutral outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings is a profit of $0.14 and has not changed. For the current year, the average estimate has moved down from a profit of $0.65 to a profit of $0.64 over the last ninety days.
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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)