Rackspace Q2 Profit Meets Estimate

(RTTNews) - Cloud-computing company Rackspace Hosting, Inc. (RAX) reported net income for the second quarter of $29.2 million or $0.20 per share, compared to $22.5 million or $0.16 per share for the year-ago quarter.

Net revenue for the second quarter rose 11% to $489.4 million from $441.2 million a year ago.

Analysts polled by Thomson Reuters expected the company to earn $0.20 per share on revenue of $490.54 million for the second quarter. Analysts' estimates typically exclude special items.

Looking forward, Rackspace expects both third and fourth quarter revenues to grow between 2.0% and 3.5% on a constant currency basis.

For the full year, the company now expects revenue to grow between 12% and 14%, on a constant-currency basis.

Rackspace said its board of directors has increased the company's existing share buyback authorization up to $1 billion, in addition to the $200 million of repurchases already carried out. The company plans to complete at least $500 million of the new buyback within six to nine months.