Rackspace Hosting reduces the rate of financial growth

Hosting company Rackspace Hosting today reported 25% rise in quarterly earnings, which is below the expectations of investors.

Analysts say that the company announced today results suggest slower growth of one of the world's largest hosting providers.

At the end of trading on Tuesday Rackspace paper dropped in price by more than 10% to 67.80 dollars. In just the last six months, the company increased the value of its shares by 38%.

According to the report of the company, in the fourth quarter, sales Rackspace increased 5% from the level of the third quarter. Investors say that for the fifth consecutive quarter, Rackspace shows slowdown in sales growth of hosting.

Investors say some slowdown can be attributed to an increase in data center power equipment and significant consolidation, which allows a single physical server, to lease, to place more data, websites, and other information. At the same time, growth has and general economic trends. In most Rackspace said that during the quarter the company enough to actively promote its cloud hosting, which allowed a lower cost for customers to place data on the Internet.


In the fourth quarter earnings Rackspace has grown to $ 30 million, or 21 cents a share, from $ 25 million, or 18 cents a share, a year earlier. Analysts polled by Thomson Reuters, expected a profit of 32 million dollars. Revenue amounted to 353 million dollars, compared to the forecast of 355 million.

 Rackspace Hosting Home Page: http://www.rackspace.com/