Rackspace Technology (NASDAQ:RXT) Updates Q1 2024 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its first quarter 2024 earnings guidance on Wednesday. The company provided earnings per share guidance of -0.140–0.120 for the period, compared to the consensus earnings per share estimate of -0.130. The company issued revenue guidance of $680.0 million-$690.0 million, compared to the consensus revenue estimate of $684.3 million.

Rackspace Technology Trading Up 4.9 %

RXT stock opened at $1.83 on Friday. The firm has a 50 day moving average of $1.75 and a 200-day moving average of $1.66. The company has a market cap of $408.12 million, a price-to-earnings ratio of -0.47 and a beta of 1.83. Rackspace Technology has a 12-month low of $1.05 and a 12-month high of $3.10.

Rackspace Technology (NASDAQ:RXT) last announced its quarterly earnings results on Tuesday, March 12th. The company reported ($0.03) earnings per share for the quarter, beating analysts’ consensus estimates 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 during the quarter, compared to analysts’ expectations of $714.74 million. During the same quarter last year, the business posted $0.06 earnings per share. The business’s revenue for the quarter was down 8.5% on a year-over-year basis. Sell-side 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 recently commented on RXT shares. Evercore ISI decreased their price objective on 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. Royal Bank of Canada reaffirmed a sector perform rating and set a $3.00 price target on shares of Rackspace Technology in a research note on Wednesday, March 13th. Raymond James cut 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 upped their price objective 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. Two equities research analysts have rated the stock with a sell rating, four have issued a hold rating and two have assigned a buy rating to the company’s stock. Based on data from MarketBeat.com, the stock currently has an average rating of Hold and an average price target of $2.31.

Insider Activity at Rackspace Technology

In other news, CEO Amar Maletira sold 37,446 shares of Rackspace Technology 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 transaction, the chief executive officer now directly owns 4,638,423 shares of the company’s stock, valued at approximately $8,905,772.16. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 1.00% of the stock is owned by insiders.

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.