The AT&T (T) and Savvis rival brought in sales of $301 million, an increase of 31% on the same period last year, and just above Wall Street's estimate of $300.53 million. Rackspace, however, said that currency exchange rates negatively impacted first-quarter revenue by $2 million compared to year-ago period.
However, Rackspace, which does not break out non-GAAP EPS, said it earned 17 cents a share on net income of $23.2 million, up from 11 cents a share and $13.8 million in the prior year's quarter. Analysts surveyed by Thomson Reuters were looking for earnings of 18 cents a share.
The company's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) margin fell on a sequential basis to 33.4% in the latest quarter from 36.1% in the December-ended period.The stock was last quoted at $50.25, down more than 13%, on volume of nearly 550,000, according to Nasdaq.com. The managed hosting company's cash flow from operations was $70 million. Capital expenditures were $82 million, including $53 million spent on customer gear and $9 million for data center build outs. "While we've made a lot of progress so far in 2012, we have much more to do," explained Lanham Napier, the Rackspace CEO, in a statement released after market close. "We are executing through a very important platform shift to our next generation cloud, and we need to make this experience incredible for our customers." Rackspace's total server count increased to 82,438, up from 79,805 in the prior quarter. Total customers climbed to 180,866, up from 172,510 at the end of the fourth 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: email@example.com.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV