Rackspace Revenue Growth Rolls On
SAN ANTONIO (TheStreet) - Managed hosting specialist Rackspace (RAX) continued its run of strong results after market close on Monday, racking up a fourth-quarter revenue beat.
The AT&T (T) and Savvis rival brought in sales of $283 million, an increase of 32% on the same period last year, beating Wall Street's estimate of $281.02 million.
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Rackspace, which does not break out non-GAAP EPS, earned 18 cents per share on net income of $25 million, up from 10 cents per share and $13.5 million in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for earnings of 15 cents per share.
The numbers pushed shares of Rackspace up $2.36, or 4.79%, to $51.59 in extended trading.
"During the year we accelerated our revenue growth rate for the second year in a row and crossed one billion dollars in annual revenue, while simultaneously improving margins and returns," explained Lanham Napier, the Rackspace CEO, in a statement. Rackspace's total server count increased to 79,805, up from 78,717 in the prior quarter. Total customers climbed to 172,510, up from 161,422 at the end of the third quarter. --Written by James Rogers in New York. >To follow the writer on Twitter, go to http://twitter.com/jamesjrogers. >To submit a news tip, send an email to: tips@thestreet.com.Select the service that is right for you!
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