Rackspace Hosting's 2Q net income jumps 43 pct

AP News
Posted: Aug 07, 2012 8:48 PM
Rackspace Hosting's 2Q net income jumps 43 pct

SAN ANTONIO (AP) — Rackspace Hosting Inc. said that its net income jumped 43 percent in the second-quarter, as the cloud computing company's customer rolls increased, helping to drive revenue sharply higher.

The results propelled Rackspace's shares nearly 12 percent higher in afterhours trading.

Rackspace reported net income of $25.1 million, or 18 cents per share, for the three months ended June 30. That compares with net income of $17.6 million, or 13 cents per share, in the same quarter last year.

Revenue grew 29 percent to $319 million from $247.2 million a year earlier.

Analysts' consensus forecast called for earnings of 18 cents per share on revenue of $317.9 million, according to FactSet.

The company said its customer count increased to 190,958 from 180,866 at the end of the previous quarter. Rackspace also boosted its server count to 84,978 from 82,438.

Shares ended the regular trading session up 83 cents at $49.30. The stock jumped $5.77 to $55.07 in extended trading following the earnings report.