USA Cloud hosting Company results beat estimates – 05/14/2014

Rackspace Hosting Inc reported better than expected quarterly results as demand rose for its cloud hosting services, and the company forecast current-quarter revenue above Wall Street estimates.

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Rackspace forecast revenue of $434 million-$440 million for the second quarter ending June. Analysts on average were expecting revenue of $435.5 million, according to Thomson Reuters I/B/E/S.

Rackspace’s net income fell to $25.4 million, or 18 cents per share, in the quarter ended March 31, from $27 million, or 19 cents per share, a year earlier.

Dedicated cloud hosting revenue, which accounts for 71 percent of the company’s total revenue, rose 11 percent. Public cloud revenue rose by more than a third.