Rackspace Hosting Fourth Quarter Earnings Sneak Peek

Rackspace Hosting (NYSE:RAX) will unveil its latest earnings on Monday, February 13, 2012. Rackspace Hosting is a provider of hosting and cloud computing services.

Rackspace Hosting Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 15 cents per share, a rise of 50% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 16 cents. Between one and three months ago, the average estimate was unchanged. It has since dropped over the last month. Analysts are projecting profit to rise by 51.4% versus last year to 53 cents.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with net income of 14 cents per share against the mean estimate of 13 cents. In the prior quarter, the company reported profit of 13 cents.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 30.9% in revenue from the year-earlier quarter to $281.1 million.

Analyst Ratings: Analysts are bullish on this stock with 11 analysts rating it as a buy, none rating it as a sell and seven rating it as a hold.

A Look Back: In the third quarter, profit rose 69.2% to $20 million (14 cents a share) from $11.8 million (9 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 32.5% to $264.6 million from $199.7 million.

Key Stats:

The company has enjoyed double-digit year-over-year percentage revenue growth for the past four quarters. Over that span, the company has averaged growth of 29.9%, with the biggest boost coming in the most recent quarter when revenue rose 32.5% from the year earlier quarter.

The company has seen net income rise in three straight quarters. Net income rose 56.8% in the second quarter and 40.9% in the first quarter.

Stock Price Performance: During January 9, 2012 to February 7, 2012, the stock price had risen $7.91 (19%) from $41.71 to $49.62. 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, rising 17% (+$7.20) over that span. It saw one of its worst periods between September 16, 2011 and September 23, 2011 when shares fell for six-straight days, falling 9.8% (-$3.77) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com