Rackspace Hosting Quarter Earnings Sneak Peek

Rackspace Hosting (NASDAQ:RAX) will unveil its latest earnings on Thursday, August 4, 2011. Rackspace Hosting, Inc. 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 net income of 12 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 13 cents. Between one and three months ago, the average estimate moved down, but it has been unchanged at 12 cents during the last month. For the year, analysts are projecting profit of 50 cents per share, a rise of 42.9% from last year.

Past Earnings Performance: The company fell short of estimates last quarter after being in line with forecasts the quarter prior. In the first quarter, it reported net income of 10 cents per share versus a mean estimate of 12 cents. Two quarters ago, it reported profit of 10 cents per share.

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Wall St. Revenue Expectations: On average, analysts predict $241.3 million in revenue this quarter, a rise of 28.8% from the year ago quarter. Analysts are forecasting total revenue of $996.3 million for the year, a rise of 27.6% from last year’s revenue of $780.6 million.

Analyst Ratings: Analysts seem relatively indifferent about Rackspace Hosting with 12 of 19 analysts surveyed maintaining a hold rating.

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 25.4%, with the biggest boost coming in the most recent quarter when revenue rose 28.6% from the year earlier quarter.

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 40.9% while it rose 49.9% in the fourth quarter of the last fiscal year and 55.3% in the third quarter of the last fiscal year.

Competitors to Watch: Equinix, Inc. (NASDAQ:EQIX), SAVVIS, Inc. (NASDAQ:SVVS), Akamai Technologies, Inc. (NASDAQ:AKAM), Computer Sciences Corp. (NYSE:CSC), InterNAP Network Services (NASDAQ:INAP), Intl. Business Machines Corp. (NYSE:IBM), EarthLink, Inc. (NASDAQ:ELNK), Hewlett-Packard Company (NYSE:HPQ), Microsoft Corporation (NASDAQ:MSFT), and Onstream Media Corp (NASDAQ:ONSM).

Stock Price Performance: During June 2, 2011 to July 29, 2011, the stock price had fallen $4.31 (-9.7%) from $44.31 to $40. The stock price saw one of its best stretches over the last year between March 22, 2011 and March 30, 2011 when shares rose for seven-straight days, rising 17.2% (+$6.32) over that span. It saw one of its worst periods between June 14, 2011 and June 20, 2011 when shares fell for five-straight days, falling 7% (-$2.90) over that span. Shares are up $8.59 (+27.3%) year to date.

(Source: Xignite Financials)

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