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.

Rackspace Technology Price Performance

Shares of RXT stock opened at $1.97 on Friday. The stock’s 50 day simple moving average is $1.73 and its 200 day simple moving average is $1.68. Rackspace Technology has a twelve month low of $1.05 and a twelve month high of $3.10.

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

Wall Street Analyst Weigh In

RXT has been the subject of several research reports. Royal Bank of Canada reiterated a sector perform rating and issued a $3.00 target price on shares of Rackspace Technology in a research note on Wednesday, March 13th. Evercore ISI reduced their price objective 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 raised their target price 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 lowered their price target on shares of Rackspace Technology from $3.50 to $3.00 and set an outperform rating on the stock in a report 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, Rackspace Technology has an average rating of Hold and an average target price of $2.31.

Insiders Place Their Bets

In related news, CEO Amar Maletira sold 37,446 shares of Rackspace Technology 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 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 sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available at the SEC website. Corporate 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.