Rackspace Beats Q2 Revenue Estimates, Guides Q3 Above Views
Rackspace Hosting (NYSE: RAX) beat second-quarter revenue expectations by a small margin and posted flat earnings in line with Wall Street views.
The cloud services company also forecast third-quarter revenue slightly higher than expectations. The company posted second-quarter net income of $22.4 million or $0.16 per share, unchanged from a year earlier. Revenue grew 17 percent to $441.1 million from $375.8 million a year earlier.
In after-hours trading, Rackspace trended down 2.5 percent to $30.50.
Chief Executive Graham Weston said second-quarter revenue growth "was the highest rate of growth that we've generated since the fourth quarter of 2012."
The company expects third-quarter revenue between $454 million and $461 million; Wall Street expects $454 million.
Wall Street expected second-quarter earnings of $0.16 per share on revenue of $436.9 million.
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