Rackspace Beats Q2 Rev Estimates; Guides Q3 Above Views

Rackspace Hosting, Inc.

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. In after-hours trading, Rackspace trended down 1 percent recently to $31.05 a share. 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. The company posted second-quarter net income of $22.4 million or $0.16 a share, unchanged from a year earlier. Revenue grew 17 percent to $441.1 million from $375.8 million a year earlier. Wall Street expected second-quarter earnings of $0.16 a share on revenue of $436.9 million.