Monday, February 11, 2013

Rackspace Earnings Preview: Higher EPS Expected

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Rackspace reports QE December 2012 financial results on Tuesday, February 12, after market close

Rackspace Preview: Higher Earnings Expected

Open cloud provider Rackspace (RAX) reports quarter ending December 2012 earnings on Tuesday, February 12, after market close. CEO Lanham Napier is expected to deliver investors another record quarter of revenues and earnings per share. However, the year over year growth rates for both are slowing. Read more and see charts at Seeking Alpha.

Addendum: I estimate Rackspace GAAP earnings per share with my own model, which is very conservative and for “ballpark” purposes only. For the quarter ending December 2012, I estimate EPS at $0.20. Rackspace consistently beats my projections which I consider a worst case scenario. I also estimate, and want to see, at least a net margin of 8% this next earnings announcement to maintain the profitability investors expect. Read more and see charts at Seeking Alpha

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