Rackspace Shares Sink More Than 8% As Quarterly Earnings Slide

Shares of Rackspace Hosting Inc. sank in Monday's extended session after the cloud-computing company posted lower quarterly earnings. Rackspace reported its fourth-quarter earnings fell to $32.1 million, or 24 cents a share, from $37 million, or 26 cents a share, a year ago. Revenue grew to $522.8 million from $427.5 million. Analysts surveyed by FactSet had forecast earnings of 23 cents a share on revenue of $521 million. In the first quarter, the company expects revenue in a range of $517 million to $521 million and $2.08 billion to $2.16 billion for the full year. Analysts are projecting first-quarter revenue of $529 million and $2.21 billion for fiscal 2016. Rackspace shares sank 8.6% in after-hours trading.