RAX: Rackspace Stock Soars on Web-Hosting Demand

by Christopher Freeburn | May 13, 2014 12:02 pm

RAX: Rackspace Stock Soars on Web-Hosting Demand

On Monday, Rackspace Hosting (RAX[1]) topped quarterly earnings forecasts[2] and issued a positive outlook for the current quarter. The news sent RAX shares jumping almost 9% in Tuesday morning trading.

Day Trading 185 RAX: Rackspace Stock Soars on Web Hosting Demand[3]RAX 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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Endnotes:
  1. RAX: http://studio-5.financialcontent.com/investplace/quote?Symbol=RAX
  2. topped quarterly earnings forecasts: http://in.reuters.com/article/2014/05/12/rackspace-results-idINL3N0NY5VD20140512
  3. [Image]: http://investorplace.com/wp-content/uploads/2011/08/Day-Trading-185.jpg
  4. GOGO Stock Takes Off on Earnings Beat: http://investorplace.com/2014/05/gogo-stock-takes-earnings-beat/
  5. GPS: Gap Stock Trades Higher on April Sales: http://investorplace.com/2014/05/gps-gap-stock-trades-higher-april-sales/#.U3DIS15hOf1
  6. PCLN: Priceline Stock Rises Despite Weak Q2 Forecast: http://investorplace.com/2014/05/pcln-priceline-stock-rises-despite-weak-q2-forecast/

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