Rackspace Falls 5% Following Q1 Earnings
Rackspace Hosting, Inc. (NYSE: RAX) has Investors fleeing in lieu of its Q1 earnings report released after the market close.
Rackspace reported an adjusted net income per share of $0.34 vs. analyst estimates of $0.22. Net revenue came in at $518.1 million vs. estimates of $518.9 million.
Rackspace also announced that it launched Private Cloud Powered by Red Hat Inc (NYSE: RHT). This expands Rackspace's portfolio and adds to the company's mantra for delivering the most "reliable and easy to use OpenStack private and hybrid clouds in the world."
Rackspace continues to expand its grip on the cloud computing sector. Revenue has grown by 9.9 percent as compared to Q1 2015, as well as Net Income growing by 77.5 percent as compared to Q1 2015.
Shares traded recently at $21.40, down 5.1 percent in the after-hours session.
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