Today, after market closes, Rackspace Inc. is releasing its Q2 2015 earning results.

Analysts expect Rackspace Hosting to post earnings of $0.20 per share and revenue of $490.54 million for the quarter, giving Rackspace Hosting, Inc. (NYSE:RAX) a mean recommendation of 2.30. The company has grown -37.82% in the past 3 months, but the stock has earnings growth of 11.10% year over year and showed a high EPS growth of +26.30% over the past five years. On Friday, shares were trading -12.05% below their 50-day moving average, and -26.52% below their 200-day moving average.

In its previous earning results, the hosting company reported $0.20 EPS for the quarter, meeting the Thomson Reuters consensus estimate of $0.20. During the same quarter last year, the company posted $0.18 earnings per share. The business had revenue of $480.20 million for the quarter, compared to the consensus estimate of $481 million. The business’s quarterly revenue was up 14.1% compared to the same quarter last year. On average, analysts expect Rackspace Hosting to post $0.87 EPS for the current fiscal year and $1.10 EPS for the next fiscal year.

A number of research analysts have recently weighed in on RAX shares. JMP Securities reiterated a “buy” rating and issued a $62.00 price target on shares of Rackspace Hosting in a research report on Monday, June 29th. Evercore ISI downgraded shares of Rackspace Hosting from a “buy” rating to a “hold” rating and decreased their price objective for the stock from $50.00 to $40.00 in a research note on Thursday, July 9th. Wells Fargo & Co. reaffirmed an “outperform” rating on shares of Rackspace Hosting in a research note on Tuesday, July 14th. Zacks lowered shares of Rackspace Hosting from a “buy” rating to a “hold” rating in a report on Thursday, July 23rd. Finally, Vetr raised shares of Rackspace Hosting from a “buy” rating to a “strong-buy” rating and set a $36.00 price target on the stock in a report on Monday.
Two equities research analysts have rated the stock with a “sell” rating, eleven have issued a “hold” rating, thirteen have assigned a “buy” rating and one has issued a “strong buy” rating to the stock. The stock presently has an average rating of “Hold” and a consensus target price of $50.05.
Business Overview
Rackspace Hosting, Inc. (Rackspace) operates in the managed cloud segment of the business information technology (IT) market. The Company offers a portfolio of integrated IT solutions for common business needs, including for e-commerce, Web content management, Website hosting, data services, office mail and collaboration, and private clouds. It also offers advisory services for technology strategy, security and compliance, application assessment and migration, and DevOps automation. The Company also offers its solutions across a variety of IT form factors, including multi-tenant public cloud, dedicated single-tenant servers, private cloud, and hybrid cloud. It also delivers managed services, and Fanatical Support across its entire product portfolio. The Company sells its services to business customers in more than 120 countries.