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Rackspace (RAX) Stock Rising on Q3 Earnings and Revenue Beat

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Rackspace Inc (RAX) is a managed cloud-computing company that delivers computing-as-a-service, integrating the industry's best technologies into a flexible service offering, making computing more reliable and affordable. The company was founded in 1998 and is headquartered in Windcrest, Texas, a suburb of San Antonio.

Currently, Rackspace has a Zacks Rank #4 (Sell), but it is subject to change following the release of the company's latest earnings report. We have highlighted some of the key statistics from this just announced report below.

Rackspace:

1. Beat earnings estimates. The company posted $0.36 EPS , surpassing our Zacks Consensus Estimate of $0.21.

2. Beat revenue estimates. The company saw revenue figures of $509 million , an increase of 10.7% from the third quarter of 2014, beating our estimate of $504 million.

3. Posted net income of $37 million, up 5.6% from a year ago.

4. "We're proud of the financial results that we delivered in the third quarter," said Taylor Rhodes, president and CEO of Rackspace. "And we're excited about the new products and partnerships that we've launched in recent months, with Amazon Web Services, Intel and Microsoft. These initiatives will make us more competitive and will drive our growth for the future."

5. RAX was up $1.14, or 4.21%, to $28.23 as of 4:36 PM ET in after hours trading shortly after its earnings report was released.

Here's a graph that looks at Rackspace's long-term EPS and growth rate:

Rackspace Hosting Inc. (RAX) EPS & Growth Rate | FindTheCompany

Check back later for our full analysis on Rackspace's third quarter earnings report!

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RACKSPACE HOSTG (RAX): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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