UPDATE: Rackspace shares surge after hours on earnings


Today 6:10 PM ET (MarketWatch)

By Wallace Witkowski, MarketWatch

SAN FRANCISCO (MarketWatch) -- Rackspace Holding Inc. shares surged in the extended session Monday after the business-website-hosting provider topped Wall Street estimates for the quarter.

Shares of Rackspace (RAX) rose 12% to $30.81 on heavy volume after the company reported first-quarter earnings of 18 cents a share on revenue of $421 million.

McKesson Corp. (MCK) rose 3% to $179.50 on moderate volume after the pharmaceutical distributor's fiscal fourth-quarter results exceeded estimates from analysts. Adjusted earnings came in at $2.55 a share, while analysts surveyed by FactSet had been looking for $2.39 a share.

Stock in DirecTV (DTV) jumped 6.4% to $92.75 on heavy volume after a report that AT&T Inc. (T) was close to sealing a deal to acquire DirecTV for about $45 billion.

Elizabeth Arden Inc. (RDEN) fell 16% to $29.95 on moderate volume after the beauty-products company reported an adjusted fiscal-third-quarter loss of 84 cents a share on revenue of $210.8 million. Analysts were expecting Elizabeth Arden to break even with revenue of $256.9 million.

The company also said it had hired Goldman Sachs to explore strategic alternatives.

Shares of Halozyme Therapeutics Inc. (HALO) rose 11% to $8.36 after the biotech said that a data-monitoring committee said the company can keep enrolling patients in a mid-stage pancreatic-cancer-drug study after it was halted in April due to safety concerns.

Halozyme also reported a first-quarter loss of 22 cents a share on revenue of $12 million. Analysts expected a loss of 15 cents a share on revenue of $13.4 million.

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-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com

(END) Dow Jones Newswires
May 12, 2014 18:10 ET (22:10 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.

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