Rackspace also blames Q1 earnings, revenue miss on currency flux

Like many other high-tech brands this quarter, Rackspace attributed the miss to being "adversely affected by shifts in currency exchange rates."

Rackspace isn't getting off to a good start this week based on the cloud company's latest earnings report, published after the bell on Monday.

The Texas-based business reported a net income of $28 million, or 20 cents per share (statement).

Non-GAAP earnings were 20 cents per share on a revenue of $480 million, up 14.1 percent year-over-year.

Wall Street was looking for earnings of 20 cents per share with at least $481.57 million in revenue.

In response, Rackspace shares dropped by as much as seven percent soon after the financials hit the wires.

Like many other high-tech brands this quarter, Rackspace attributed the miss to being "adversely affected by shifts in currency exchange rates."

Nevertheless, Rackspace CEO and president Taylor Rhodes asserted in prepared remarks that Rackspace "delivered on our promises in the first quarter."

"The execution of our strategy is driving profitable growth for Rackspace, including through a rising number of new, larger enterprise customers," continued Rhodes.

For the current quarter, Wall Street expects Rackspace to deliver at least 22 cents per share in earnings with $502.11 million in revenue.

Rackspace responded by projecting Q2 revenue to grow by 1.5 to 2.5 percent.

CORRECTION: A previous version of this article listed the Q1 2015 earnings per share as 18 cents per share, when in fact it was 20 cents per share. The $0.18 EPS figure came from Q1 2014.

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