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RAX: Rackspace Stock Soars on Web-Hosting Demand

It beat profit and revenue estimates


On Monday, Rackspace Hosting (RAX) topped quarterly earnings forecasts and issued a positive outlook for the current quarter. The news sent RAX shares jumping almost 9% in Tuesday morning trading.

Day Trading 185RAX stock gained after the web-hosting firm reported first-quarter net income of $25.4 million, down from $27 million in the prior-year period. EPS came in at 18 cents a share, easily beating the 12 cents that Wall Street was expecting, Reuters notes.

Quarterly revenue climbed 16% to $421 million, which narrowly exceeded the $419.4 million that analysts had estimated.

RAX said it anticipated second-quarter revenue of between $434 million and $440 million. Wall Street is looking for revenue of about $435.5 million.

Yesterday, RAX stock closed at $27.53 per share.

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