Rackspace Hosting First Quarter Earnings Sneak Peek

Rackspace Hosting (NYSE:RAX) will unveil its latest earnings on Monday, May 7, 2012. Rackspace Hosting is a provider of hosting and cloud computing services.

Rackspace Hosting Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 17 cents per share, a rise of 70% from the company’s actual earnings for the year-ago quarter. The average estimate is the same as three months ago. Between one and three months ago, the average estimate was unchanged. It also has not changed during the last month. Analysts are projecting profit to rise by 43.6% compared to last year’s 79 cents.

Past Earnings Performance: Last quarter, the company reported profit of 18 cents per share versus a mean estimate of net income of. The company has beaten estimates for the past three quarters.

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Wall St. Revenue Expectations: On average, analysts predict $300.5 million in revenue this quarter, a rise of 30.7% from the year-ago quarter. Analysts are forecasting total revenue of $1.32 billion for the year, a rise of 28.2% from last year’s revenue of $1.03 billion.

Analyst Ratings: Analysts seem relatively indifferent about Rackspace Hosting with nine of 17 analysts surveyed maintaining a hold rating.

A Look Back: In the fourth quarter of the last fiscal year, profit rose 85% to $25 million (18 cents a share) from $13.5 million (10 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 31.9% to $283.3 million from $214.7 million.

Key Stats:

With double-digit revenue growth the past four quarters, this earnings release is a chance to keep that positive trend going. The company has averaged year-over-year revenue growth of 31.3% over the last four quarters.

This upcoming earnings announcement will be a chance to build on positive earnings momentum over the last three quarters. Net income rose 56.8% in the second quarter of the last fiscal year and 69.2% in the third quarter of the last fiscal year before increasing again in the fourth quarter of the last fiscal year.

Stock Price Performance: Between February 3, 2012 and May 1, 2012, the stock price rose $11.36 (24.1%), from $47.19 to $58.55. The stock price saw one of its best stretches over the last year between January 30, 2012 and February 7, 2012, when shares rose for seven straight days, increasing 17% (+$7.20) over that span. It saw one of its worst periods between February 22, 2012 and February 29, 2012 when shares fell for six straight days, dropping 2.7% (-$1.47) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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