Rackspace shares drop after revenue miss, outlookFont size: A | A | A
4:20 PM ET 5/11/15 | MarketWatch
Rackspace Hosting Inc. (RAX) shares dropped in the extended session Monday
after the cloud-based web hosting company's revenue and outlook for the
quarter fell below Wall Street estimates. Rackspace shares dropped 9.3% to $
48.18 on moderate volume. The company reported first-quarter earnings of 20
cents a share on revenue of $480.2 million. Analysts surveyed by FactSet had
estimated earnings of 19 cents a share on revenue of $481 million.
Rackspace said it expects second-quarter revenue to grow by 1.5% to 2.5% on
a constant currency basis. The company reported second-quarter revenue of $
441.1 million in 2014. Analysts estimate second-quarter revenue of $501.2
million.