NEW YORK (TheStreet) -- Shares of Rackspace Hosting Inc. (RAX) are higher by 9.44% to $30.13 on Tuesday after the company announced after yesterday's close that net earnings and revenue were up for the 2014 first quarter.
While the open cloud company said net income grew 22.3% over the 2013 fourth quarter to $25 million, it was lower than the net income of $27 million for the 2013 first quarter.
Net revenue for the 2014 first quarter was higher than the previous year's first quarter by 16% to $421 million from $362 million.
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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and disappointing return on equity."