Rackspace Technology (NASDAQ:RXT) Releases Q2 2024 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) issued an update on its second quarter 2024 earnings guidance on Thursday. The company provided EPS guidance of -0.110–0.090 for the period, compared to the consensus EPS estimate of -0.110. The company issued revenue guidance of $668.0 million-$678.0 million, compared to the consensus revenue estimate of $675.8 million. Rackspace Technology also updated its Q2 guidance to ($0.09)-($0.11) EPS.

Wall Street Analyst Weigh In

RXT has been the subject of a number of recent analyst reports. Evercore ISI decreased their target price on Rackspace Technology from $3.00 to $2.00 and set an in-line rating for the company in a research report on Wednesday, March 13th. BMO Capital Markets lifted their target price on shares of Rackspace Technology from $1.50 to $2.50 and gave the stock a market perform rating in a report on Wednesday, March 13th. Raymond James decreased their price target on shares of Rackspace Technology from $3.50 to $3.00 and set an outperform rating for the company in a report on Wednesday, March 13th. Finally, Royal Bank of Canada reiterated a sector perform rating and issued a $3.00 price objective on shares of Rackspace Technology in a research note on Wednesday, March 13th. Two investment analysts have rated the stock with a sell rating, four have given a hold rating and two have assigned a buy rating to the stock. Based on data from MarketBeat, the company has an average rating of Hold and an average target price of $2.31.

Rackspace Technology Stock Up 5.4 %

Shares of RXT stock traded up $0.10 during mid-day trading on Thursday, reaching $1.96. The stock had a trading volume of 2,550,015 shares, compared to its average volume of 1,260,355. The firm’s 50 day simple moving average is $1.73 and its 200 day simple moving average is $1.67. The firm has a market cap of $438.31 million, a PE ratio of -0.50 and a beta of 1.83. Rackspace Technology has a one year low of $1.05 and a one year high of $3.10.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings results on Tuesday, March 12th. The company reported ($0.03) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.04) by $0.01. Rackspace Technology had a negative net margin of 28.33% and a negative return on equity of 10.18%. The firm had revenue of $720.00 million for the quarter, compared to the consensus estimate of $714.74 million. During the same quarter in the previous year, the company earned $0.06 earnings per share. The business’s revenue was down 8.5% compared to the same quarter last year. Sell-side analysts forecast that Rackspace Technology will post -0.38 earnings per share for the current fiscal year.

Insider Buying and Selling

In related news, CEO Amar Maletira sold 37,446 shares of the stock in a transaction dated Tuesday, February 20th. The shares were sold at an average price of $1.92, for a total transaction of $71,896.32. Following the completion of the sale, the chief executive officer now owns 4,638,423 shares in the company, valued at approximately $8,905,772.16. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. Company insiders own 1.00% of the company’s stock.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company in the Americas, Europe, the Middle East, Africa, and The Asia-Pacific region. It operates through three segments: Multicloud Services, Apps & Cross Platform, and OpenStack Public Cloud. The company provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; professional services related to designing and building multi cloud solutions and cloud-native applications; and managed hosting and colocation services.