Rackspace Soars On Earnings Results
Shares of Rackspace Hosting (NYSE: RAX) are surging on Tuesday after the company released better than expected fiscal fourth quarter earnings results. The company reported net income of $25 million or $0.18 per share, compared to $13.5 million or $0.10 per share in the year ago period. This compared to Street consensus EPS estimates of $0.15.
Revenues for the quarter rose to $283.3 million, a 32% increase from the $281.02 million that the company reported in the year ago period. Operating margins rose from 10.9% to 14%.
On Tuesday, RAX shares are up 11.29% to $54.79 on very heavy volume.
© 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.