Rackspace Hosting (RAX) Stock Rising on Earnings Beat
NEW YORK (TheStreet) -- Rackspace Hosting (RAX) stock continues to climb, up by 16.50% to $31.56 in mid-morning trading on Tuesday, after the company reported its 2015 third quarter earnings results.
After the market close on Monday, the cloud computing company reported earnings of 26 per share on revenue of $508.9 million.
Analysts were expecting the company to report earnings of 20 cents per share on revenue of $503.08 million.
"We're proud of the financial results that we delivered in the third quarter," CEO Taylor Rhodes said in a statement. "And we're excited about the new products and partnerships that we've launched in recent months, with Amazon Web Services (AMZN), Intel (INTC) and Microsoft (MSFT)."
Rackspace has struggled to increase business since it moved its focus to the managed cloud market, the Wall Street Journal reported. Shares of Rackspace have fallen 33.58% year-to-date.
Separately, TheStreet Ratings team rates RACKSPACE HOSTING INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
We rate RACKSPACE HOSTING INC (RAX) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its impressive record of earnings per share growth, compelling growth in net income and revenue growth. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and weak operating cash flow.
You can view the full analysis from the report here: RAX
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