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

Rackspace Technology (NASDAQ:RXT) updated its first quarter 2024 earnings guidance on Wednesday. The company provided EPS guidance of -0.140–0.120 for the period, compared to the consensus EPS 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 Price Performance

Rackspace Technology stock opened at $1.83 on Friday. The firm has a fifty day simple moving average of $1.75 and a two-hundred day simple moving average of $1.66. Rackspace Technology has a twelve month low of $1.05 and a twelve month 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, topping the consensus estimate of ($0.04) by $0.01. The firm had revenue of $720.00 million for the quarter, compared to the consensus estimate of $714.74 million. Rackspace Technology had a negative return on equity of 10.18% and a negative net margin of 28.33%. The company’s quarterly revenue was down 8.5% on a year-over-year basis. During the same quarter in the previous year, the business earned $0.06 earnings per share. As a group, research analysts anticipate that Rackspace Technology will post -0.38 EPS for the current year.

Analyst Ratings Changes

A number of analysts have recently weighed in on RXT shares. BMO Capital Markets increased their price objective on Rackspace Technology from $1.50 to $2.50 and gave the company a market perform rating in a research note on Wednesday, March 13th. Royal Bank of Canada reissued a sector perform rating and set a $3.00 price objective on shares of Rackspace Technology in a research note on Wednesday, March 13th. Evercore ISI dropped their price objective on Rackspace Technology from $3.00 to $2.00 and set an in-line rating for the company in a research note on Wednesday, March 13th. Finally, Raymond James dropped their price objective on Rackspace Technology from $3.50 to $3.00 and set an outperform rating for the company in a research note 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 stock. Based on data from MarketBeat, Rackspace Technology has a consensus rating of Hold and a consensus target price of $2.31.

Insider Buying and Selling

In related news, CEO Amar Maletira sold 37,446 shares of the firm’s stock in a transaction on 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 sale, the chief executive officer now owns 4,638,423 shares of the company’s stock, valued at $8,905,772.16. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. 1.00% of the stock is currently 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.