Rackspace Hosting Jumps on Q4 Results

Shares of Rackspace Hosting

are trading higher in the after-hours following the release of the company's Q4 earnings results. Currently, shares are higher by 5.83%, trading at $52.10; they ended the regular session higher by 1.44%, at $49.21. Rackspace Hosting reported Q4 EPS of $0.18 on revenues of $283.3 million; the Street was looking for $0.16 per share on revenues of $280.89 million. Revenues increased 32% year over year. Adjusted EBITDA for the quarter was $102 million, a 16.2% increase compared to the third quarter of 2011 and a 42% increase compared to the fourth quarter of 2010. Cash flow from operating activities was $105 million for the fourth quarter of 2011. "We are very pleased with the financial results we have generated for the fourth quarter and the full year. We accomplished our financial objectives for 2011 and ended the year really strong," said Karl Pichler, chief financial officer. Rackspace Hosting, Inc. operates in the hosting and cloud computing industry. It offers its products under the Fanatical Support brand.