Rackspace Surges On Strong Third-quarter Results

By Sue ChangMarketWatch Pulse

Rackspace Hosting Inc. rallied in Monday's extended session after the cloud-computing company posted better-than-expected quarterly results. Rackspace reported its third-quarter earnings rose to $36.5 million, or 26 cents a share, from $25.7 million, or 18 cents a share, a year ago. Revenue grew 10.7% to $508.9 million. Analysts surveyed by FactSet had forecast earnings of 20 cents a share on revenue of $503 million. In the fourth quarter, the company expects revenue to rise 2% to 3% sequentially. Shares of Rackspace jumped 8.3% in after-hours trading.

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