Rackspace Technology, Inc. (NASDAQ:RXT) Expected to Post Earnings of $0.24 Per Share

Analysts predict that Rackspace Technology, Inc. (NASDAQ:RXT) will post $0.24 earnings per share for the current quarter, according to Zacks. Five analysts have provided estimates for Rackspace Technology’s earnings. Rackspace Technology posted earnings per share of $0.19 during the same quarter last year, which indicates a positive year-over-year growth rate of 26.3%. The firm is expected to announce its next earnings results on Tuesday, November 9th.

According to Zacks, analysts expect that Rackspace Technology will report full year earnings of $0.95 per share for the current financial year, with EPS estimates ranging from $0.95 to $0.97. For the next fiscal year, analysts expect that the firm will report earnings of $1.05 per share, with EPS estimates ranging from $0.82 to $1.14. Zacks’ earnings per share averages are a mean average based on a survey of sell-side research analysts that cover Rackspace Technology.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings data on Wednesday, August 11th. The company reported $0.24 earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of $0.23 by $0.01. Rackspace Technology had a positive return on equity of 13.74% and a negative net margin of 9.26%.

Several analysts recently issued reports on the company. JPMorgan Chase & Co. cut Rackspace Technology from an “overweight” rating to a “neutral” rating and cut their target price for the stock from $19.00 to $18.00 in a research note on Tuesday, August 17th. Raymond James cut Rackspace Technology from a “strong-buy” rating to a “market perform” rating in a research note on Thursday, August 12th. Royal Bank of Canada cut their target price on Rackspace Technology from $27.00 to $24.00 and set an “outperform” rating on the stock in a research note on Thursday, August 12th. They noted that the move was a valuation call. Credit Suisse Group cut their target price on Rackspace Technology from $27.00 to $21.00 and set an “outperform” rating on the stock in a research note on Thursday, August 12th. Finally, restated a “buy” rating and issued a $28.00 price objective on shares of Rackspace Technology in a report on Tuesday, June 29th. One equities research analyst has rated the stock with a sell rating, three have assigned a hold rating and seven have issued a buy rating to the stock. Based on data from MarketBeat, Rackspace Technology has an average rating of “Buy” and an average target price of $22.15.

In other news, Director Timothy Campos sold 11,992 shares of Rackspace Technology stock in a transaction that occurred on Friday, July 16th. The shares were sold at an average price of $19.17, for a total transaction of $229,886.64. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this hyperlink. 0.76% of the stock is currently owned by company insiders.

Several institutional investors and hedge funds have recently made changes to their positions in RXT. IFP Advisors Inc bought a new stake in Rackspace Technology in the 1st quarter worth approximately $68,000. Ameritas Investment Partners Inc. grew its position in Rackspace Technology by 46.3% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 4,217 shares of the company’s stock worth $83,000 after purchasing an additional 1,335 shares during the period. US Bancorp DE bought a new stake in Rackspace Technology in the 1st quarter worth approximately $161,000. Signaturefd LLC grew its position in Rackspace Technology by 448.9% in the 1st quarter. Signaturefd LLC now owns 7,344 shares of the company’s stock worth $175,000 after purchasing an additional 6,006 shares during the period. Finally, Ocean Capital Management LLC bought a new stake in Rackspace Technology in the 1st quarter worth approximately $207,000. 86.71% of the stock is owned by institutional investors.

NASDAQ RXT opened at $14.76 on Thursday. The company has a debt-to-equity ratio of 2.72, a current ratio of 1.12 and a quick ratio of 1.12. The stock has a market capitalization of $3.09 billion and a PE ratio of -10.93. Rackspace Technology has a 1 year low of $13.07 and a 1 year high of $26.43. The business’s 50-day moving average is $16.33 and its 200 day moving average is $20.04.

About Rackspace Technology

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.

See Also: Debt-To-Equity Ratio

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Earnings History and Estimates for Rackspace Technology (NASDAQ:RXT)

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