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

Rackspace Technology (NASDAQ:RXT) issued an update on its second quarter 2024 earnings guidance on Thursday morning. 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 Analysts Forecast Growth

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

Rackspace Technology Stock Performance

Shares of RXT traded up $0.10 during mid-day trading on Thursday, hitting $1.96. 2,550,015 shares of the company’s stock were exchanged, compared to its average volume of 1,260,355. The company has a market cap of $438.31 million, a price-to-earnings ratio of -0.50 and a beta of 1.83. The stock’s 50-day moving average is $1.73 and its 200-day moving average is $1.67. Rackspace Technology has a fifty-two week low of $1.05 and a fifty-two week high of $3.10.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings data on Tuesday, March 12th. The company reported ($0.03) earnings per share (EPS) for the quarter, beating the consensus estimate of ($0.04) by $0.01. Rackspace Technology had a negative return on equity of 10.18% and a negative net margin of 28.33%. The business had revenue of $720.00 million for the quarter, compared to analysts’ expectations of $714.74 million. During the same period last year, the firm earned $0.06 earnings per share. The company’s revenue for the quarter was down 8.5% compared to the same quarter last year. As a group, equities research analysts anticipate that Rackspace Technology will post -0.38 EPS for the current year.

Insider Transactions at Rackspace Technology

In other Rackspace Technology news, CEO Amar Maletira sold 37,446 shares of the firm’s stock in a transaction that occurred on Tuesday, February 20th. The shares were sold at an average price of $1.92, for a total transaction of $71,896.32. Following the sale, the chief executive officer now owns 4,638,423 shares of the company’s stock, valued at $8,905,772.16. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. 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.