NEW YORK (TheStreet) -- Shares of Rackspace Hosting (RAX) were lower in after-hours trading on Monday, after reporting a lower-than-expected outlook for the current quarter and full year after today's market close.
For the current quarter, the company sees revenue of $510 million to $515 million, compared to consensus estimates for $531 million.
For fiscal 2016, Rackspace expects revenues between $2.06 billion and $2.08 billion, while analysts were looking for revenues of $2.11 billion.
Rackspace said the lower forecast is a result of currency fluctuations.
The Windcrest, TX-based cloud computing company reported earnings of 38 cents per share, topping analysts' estimates of 22 cents per share. Revenues rose by 7% year-over-year to $524 million, above Wall Street's expectations of $521.19 million.
"Demand is scaling rapidly for the expertise and managed services that we provide to businesses that use AWS, the Microsoft Cloud, and our OpenStack private cloud," CEO Taylor Rhodes said in the report.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Rackspace Hosting as a Hold with a ratings score of C. The primary factors that have impacted the team's 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.
You can view the full analysis from the report here: RAX