Technology stocks were advancing today with shares of technology
companies in the S&P 500 climbing about 1.1% this
In company news, Rackspace Hosting Inc. (
) fell nearly 18% Tuesday after the online business-services
company said its chief executive had retired, trumping Q4 earnings
and revenue matching analyst forecasts.
The company late yesterday said Lanham Napier had stepped down
as CEO and a member on the RAX board of directors. Napier will be
replaced by Graham Weston, the company's co-founder and executive
chairman of the RAX board, with Napier now planning to advise and
invest in startup companies. He also will work as a consultant to
RAX over the next several months to ensure a smooth transition.
The company on Monday also posted Q4 earnings of $0.14 per
share, matching the Capital IQ consensus. Revenue rose 15.9% year
over year to $408 million, roughly in-line with analyst estimates
looking for $404.64 million during the three months ended Dec. 31,
Net income totaled $21 million during the quarter, up 27.5% from
the prior quarter but slipping 30% from the same quarter last
Speaking on a conference call with analysts and investors last
night, RAX executives said they sees Q1 revenue climbing 2% to 3.5%
over year-ago levels to a range of $416 million to $422 million,
straddling the Capital IQ consensus expecting $417 million.
For the entire year, the company is anticipating 15% to 18%
revenue growth, improving as the year proceeds to a range of $1.764
billion to $1.81 billion - also in-line with the Capital IQ
consensus looking for $1.775 billion in yearly revenue. Capital
spending this year is projected to be around 25% of revenue.
Shares were off 18% at $33.12 apiece in recent trade, sliding as
low as $33.01 a share. The stock has a 52-week range of $32.62 to
$75.37 a share.
In other sector news,
(+) MERU, (+3.0%) Posts break-even Q4 compared to $0.13 per
share net loss in year-ago period, beating analyst consensus by
$0.06 per share. Revenue rises 7.1% year over year to $30.2 mln,
topping Street view by $3.17 mln. Expects "above-market" growth
during second half of FY14.
(-) BLOX, (-47.3%) Lowers Q2 revenue outlook by $5 mln, now
expecting $60 mln to $61 mln and missing Street view by at least
$4.6 mln. Boosts EPS guidance by $0.01 to new range of $0.10 to
$0.12, matching $0.10 per share consensus. Also cuts FY14 revenue