Rackspace (RAX) stock was up on Tuesday following its Q3 earnings report.
Rackspace reported earnings per share of 26 cents for the third quarter of 2015. This is up from the 18 cents per share that it reported during the same time last year. It also surpassed Wall Street’s estimates for the company, which were set at 20 cents per share, reports The Wall Street Journal.
Rackspace’s revenue for the third quarter of 2015 was $508.9 million. This is an 11% increase from the third quarter of 2014. It also beat the $503.1 million in revenue that analysts’ were expecting from the company, WSJ notes.
“Revenue outperformance was driven by large deals that had been anticipated to close earlier in the year, and began contributing revenue in Q3,” Jonathan Schildkraut, an Evercore ISI analyst, told Investor’s Business Daily. “In addition, public cloud activity — which had been weak in 1H — saw a pickup driven by e-commerce customers gearing up for the shopping season.”
RAX shares were up 14% as of Noon Tuesday.
More From InvestorPlace:
