Rackspace Technology (NASDAQ:RXT) Releases Q2 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its second quarter earnings guidance on Thursday. The company provided earnings per share (EPS) guidance of ($0.09)-($0.11) for the period, compared to the consensus estimate of ($0.11). The company issued revenue guidance of $668-$678 million, compared to the consensus revenue estimate of $675.70 million. Rackspace Technology also updated its Q2 2024 guidance to -0.110–0.090 EPS.

Rackspace Technology Stock Performance

NASDAQ:RXT opened at $1.97 on Friday. The firm has a 50-day simple moving average of $1.73 and a two-hundred day simple moving average of $1.68. 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 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 return on equity of 10.18% and a negative net margin of 28.33%. The company 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 posted $0.06 earnings per share. Rackspace Technology’s revenue was down 8.5% compared to the same quarter last year. On average, research analysts forecast that Rackspace Technology will post -0.38 earnings per share for the current fiscal year.

Analysts Set New Price Targets

A number of analysts have commented on the company. Royal Bank of Canada restated a sector perform rating and issued a $3.00 price target on shares of Rackspace Technology in a research report on Wednesday, March 13th. Evercore ISI reduced their price target 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 upped their price target on Rackspace Technology from $1.50 to $2.50 and gave the stock a market perform rating in a research report on Wednesday, March 13th. Finally, Raymond James reduced their price target on Rackspace Technology from $3.50 to $3.00 and set an outperform rating for the company in a research report on Wednesday, March 13th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and two have given a buy rating to the company’s stock. According to MarketBeat.com, Rackspace Technology has a consensus rating of Hold and a consensus target price of $2.31.

Insider Transactions at Rackspace Technology

In other news, CEO Amar Maletira sold 37,446 shares of the company’s stock in a transaction dated Tuesday, February 20th. The stock was sold at an average price of $1.92, for a total value of $71,896.32. Following the completion of the transaction, 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 is accessible through this hyperlink. Corporate insiders own 1.00% of the company’s stock.

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.