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

Rackspace Technology (NASDAQ:RXT) updated its second quarter 2024 earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of -0.110–0.090 for the period, compared to the consensus 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.

Analyst Ratings Changes

A number of brokerages recently issued reports on RXT. Royal Bank of Canada restated a sector perform rating and set a $3.00 price objective on shares of Rackspace Technology in a report on Wednesday, March 13th. Raymond James cut their price target on shares of Rackspace Technology from $3.50 to $3.00 and set an outperform rating on the stock in a research note on Wednesday, March 13th. BMO Capital Markets lifted their price target on shares of Rackspace Technology from $1.50 to $2.50 and gave the company a market perform rating in a research note on Wednesday, March 13th. Finally, Evercore ISI cut 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 note on Wednesday, March 13th. Two analysts have rated the stock with a sell rating, four have assigned a hold rating and two have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the company currently has an average rating of Hold and a consensus price target of $2.31.

Rackspace Technology Trading Up 5.4 %

Shares of NASDAQ:RXT traded up $0.10 on Thursday, hitting $1.96. The company had a trading volume of 2,550,015 shares, compared to its average volume of 1,260,355. Rackspace Technology has a 1-year low of $1.05 and a 1-year high of $3.10. The stock has a market cap of $438.31 million, a price-to-earnings ratio of -0.50 and a beta of 1.83. The stock has a 50 day moving average price of $1.73 and a 200 day moving average price of $1.67.

Rackspace Technology (NASDAQ:RXT) last released its quarterly earnings data on Tuesday, March 12th. The company reported ($0.03) EPS for the quarter, beating the consensus estimate 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 period in the previous year, the company earned $0.06 earnings per share. The company’s quarterly revenue was down 8.5% on a year-over-year basis. Sell-side analysts anticipate that Rackspace Technology will post -0.38 earnings per share for the current fiscal year.

Insider Activity at Rackspace Technology

In related news, CEO Amar Maletira sold 37,446 shares of the company’s 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 of the company’s stock, valued at $8,905,772.16. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 1.00% of the stock is currently owned by corporate insiders.

About Rackspace Technology

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.