Rackspace Shares Surge on Earnings Beat
Rackspace shares are higher in after-hours trading after it posted net earnings of $0.19 a share on $420 million in revenues, better than analysts had expected.
Rackspace shares are higher in after-hours trading after it posted quarterly results which topped Wall Street forecasts. The San Antonio-based company surprised Wall Street with net earnings of $0.19 a share on $420 million in revenues, better than expected. For the current quarter, Rackspace expects to deliver earnings of $0.14 cents a share on revenue of $435.53 million. Rackspace stock had plummeted close to 70% over the past 16 months. Part of the lack of confidence in Rackspace has been the effect of struggles seen in Amazon's own Web Services segment. Shares of Rackspace are now trading 10 percent higher.
