(WEB HOST INDUSTRY REVIEW) — Web hosting company Rackspace Hosting (www.rackspace.com) announced on Wednesday its fourth quarter earnings which exceeded market projections.
The announcement follows strong earnings for its third-quarter, which saw revenue of $147.1 million.
The hosting provider earned $9.0 million, or 7 cents a share, in comparison to the $6.8 million, or 6 cents a share, it earned a year ago.
Rackspace attributes the high earnings to revenue growth in both its cloud business and its managed hosting business, which saw an 18 percent increase to $169.5 million.
Industry analysts were expecting earnings of 6 cents a share, on revenue of $168.6 million, according to Thomson Reuters.
The company’s managed hosting revenue saw a 4 percent rise to $152.4 million from the third quarter, while its cloud revenue increased by 12 percent to $17.1 million.
The company expects that its capital expenditure will be between $185 million to $235 million in 2010.
Rackspace closed at $18.81 a share Tuesday on the New York Stock Exchange.
