Rackspace Technology (NASDAQ:RXT) Releases Q2 2021 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) issued an update on its second quarter 2021 earnings guidance on Tuesday morning. The company provided earnings per share guidance of $0.210-0.230 for the period, compared to the Thomson Reuters consensus earnings per share estimate of $0.230. The company issued revenue guidance of $690 million-698 million, compared to the consensus revenue estimate of $735.04 million.Rackspace Technology also updated its FY 2021 guidance to $0.950-1.050 EPS.

Shares of RXT stock traded down $0.26 during mid-day trading on Thursday, hitting $20.91. 33,468 shares of the stock traded hands, compared to its average volume of 1,917,723. Rackspace Technology has a twelve month low of $15.25 and a twelve month high of $26.43. The stock has a market capitalization of $4.34 billion and a price-to-earnings ratio of -15.28. The stock’s 50-day simple moving average is $22.82. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 2.76.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings results on Monday, May 10th. The company reported $0.23 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.21 by $0.02. Rackspace Technology had a positive return on equity of 14.18% and a negative net margin of 9.41%. The company had revenue of $725.90 million for the quarter, compared to analysts’ expectations of $724.67 million. During the same period last year, the firm earned $0.16 EPS. The firm’s revenue for the quarter was up 11.2% on a year-over-year basis. Equities analysts forecast that Rackspace Technology will post 1 earnings per share for the current year.

RXT has been the topic of several research analyst reports. Raymond James upgraded Rackspace Technology from an outperform rating to a strong-buy rating in a research report on Tuesday, May 18th. William Blair began coverage on Rackspace Technology in a research note on Wednesday, March 31st. They set an outperform rating for the company. Finally, Zacks Investment Research raised Rackspace Technology from a sell rating to a hold rating in a research note on Tuesday, May 25th. One equities research analyst has rated the stock with a hold rating, eleven have assigned a buy rating and one has issued a strong buy rating to the company’s stock. The stock has a consensus rating of Buy and an average price target of $27.95.

In other news, CFO Amar Maletira acquired 5,419 shares of Rackspace Technology stock in a transaction that occurred on Thursday, May 13th. The stock was purchased at an average price of $18.45 per share, with a total value of $99,980.55. Following the completion of the transaction, the chief financial officer now owns 1,048,619 shares in the company, valued at $19,347,020.55. The transaction was disclosed in a document filed with the SEC, which is accessible through this link. Also, CEO Kevin M. Jones acquired 5,409 shares of Rackspace Technology stock in a transaction that occurred on Thursday, May 13th. The shares were purchased at an average cost of $18.44 per share, with a total value of $99,741.96. Following the transaction, the chief executive officer now owns 777,279 shares of the company’s stock, valued at approximately $14,333,024.76. The disclosure for this purchase can be found here. In the last ninety days, insiders bought 14,798 shares of company stock valued at $274,954. 0.76% of the stock is currently owned by insiders.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company worldwide. It operates through Multicloud Services and Apps & Cross Platform segments. The company's Multicloud Services segment provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; and professional services related to designing and building multi cloud solutions and cloud-native applications.

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