Rackspace reported earnings of 18 cents a share for the third quarter, beat the 16 cents a share analysts surveyed by Zacks Investment Research expected for the quarter. Revenue grew 18.4% year over year to $459.8 million in the quarter, compared to analysts' estimates of $458.9 million for the quarter.
The company said it expects to report revenue of $469 million to $477 million for the fourth quarter, compared to analysts' estimates of $477 million for the quarter.
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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 good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself and disappointing return on equity."