Rackspace Hosting Tumbles After Company Misses on Revenue
Shares of Rackspace Hosting (NYSE: RAX) tumbled after-hours on Tuesday after the webspace hosting company reported earnings. Rackspace posted an earnings per share figure of $0.21, inline with analyst expectations. Revenue, however, was a bit light at $352.9 million, less than the $355.42 million.
Shares of Rackspace were down as much as 9% after-hours. As Rackspace currently trades with a price-to-earnings ratio over 100, investors have exceptionally lofty expectations for the company's growth. Even a minor miss can send shares plunging.
© 2017 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.