Rackspace Soars On Earnings Results

Shares of Rackspace Hosting

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.