Wednesday, February 13, 2013

Rackspace Drops 8%: Q4 Revenue Misses

Shares of Rackspace Hosting (RAX) are down $5.25, over 7%, at $69.75 after the company this afternoon reported Q4 revenue that missed analysts’ estimates and earnings per share that were in line with consensus.

Revenue in the three months ended in December rose 25%, year over year, and 5%, quarter to quarter, to $353 million, yielding EPS of 21 cents.

Analysts had been modeling $355 million and 21 cents.

CFO Karl Pichler said that the company was “very pleased” with the results for the full year.

Adjusted Ebitda rose 27%, year over year, to $130 million, the company said, a 36.8% Ebitda margin.

Rackspace will host a conference call with analysts at 4:30 pm, Eastern time, and you can catch the webcast of it here.

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