Rackspace Technology (NASDAQ:RXT) Issues Q2 Earnings Guidance

Rackspace Technology (NASDAQ:RXTGet Rating) updated its second quarter earnings guidance on Tuesday. The company provided EPS guidance of $0.15 to $0.17 for the period, compared to the consensus EPS estimate of $0.22. The company issued revenue guidance of $780 million to $790 million, compared to the consensus revenue estimate of $800.70 million.Rackspace Technology also updated its Q2 2022 guidance to $0.15-$0.17 EPS.

A number of research firms have issued reports on RXT. Citigroup decreased their target price on Rackspace Technology from $16.00 to $13.00 in a research note on Wednesday. BMO Capital Markets cut Rackspace Technology from an outperform rating to a market perform rating and decreased their target price for the company from $18.00 to $10.50 in a research note on Wednesday, February 23rd. Barclays decreased their target price on Rackspace Technology from $17.00 to $10.00 in a research note on Thursday, February 24th. Oppenheimer cut Rackspace Technology from an outperform rating to a market perform rating in a research note on Friday, April 8th. Finally, Royal Bank of Canada decreased their target price on Rackspace Technology from $24.00 to $18.00 and set an outperform rating for the company in a research note on Wednesday, February 23rd. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and five have assigned a buy rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of Hold and an average target price of $15.68.

RXT opened at $8.63 on Wednesday. Rackspace Technology has a 52-week low of $7.28 and a 52-week high of $21.50. The firm has a market capitalization of $1.83 billion, a PE ratio of -8.22, a PEG ratio of 1.05 and a beta of 0.80. The company has a debt-to-equity ratio of 2.80, a quick ratio of 1.18 and a current ratio of 1.18. The business’s 50-day simple moving average is $10.45 and its 200 day simple moving average is $12.35.

Rackspace Technology (NASDAQ:RXTGet Rating) last released its earnings results on Tuesday, May 10th. The company reported $0.22 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.21 by $0.01. Rackspace Technology had a positive return on equity of 15.14% and a negative net margin of 7.25%. The business had revenue of $775.50 million for the quarter, compared to analyst estimates of $774.45 million. During the same quarter in the prior year, the company posted $0.23 earnings per share. Rackspace Technology’s revenue was up 6.8% on a year-over-year basis. On average, research analysts forecast that Rackspace Technology will post 0.93 earnings per share for the current year.

A number of institutional investors and hedge funds have recently added to or reduced their stakes in RXT. Vident Investment Advisory LLC raised its stake in Rackspace Technology by 10.9% in the fourth quarter. Vident Investment Advisory LLC now owns 21,201 shares of the company’s stock valued at $286,000 after buying an additional 2,077 shares during the period. Credit Suisse AG raised its stake in Rackspace Technology by 6.2% in the fourth quarter. Credit Suisse AG now owns 28,653 shares of the company’s stock valued at $386,000 after buying an additional 1,674 shares during the period. The Manufacturers Life Insurance Company raised its stake in Rackspace Technology by 12.5% in the fourth quarter. The Manufacturers Life Insurance Company now owns 31,077 shares of the company’s stock valued at $419,000 after buying an additional 3,447 shares during the period. Bank of America Corp DE raised its stake in Rackspace Technology by 155.0% in the fourth quarter. Bank of America Corp DE now owns 37,738 shares of the company’s stock valued at $509,000 after buying an additional 22,941 shares during the period. Finally, Alliancebernstein L.P. raised its stake in Rackspace Technology by 42.7% in the fourth quarter. Alliancebernstein L.P. now owns 40,521 shares of the company’s stock valued at $546,000 after buying an additional 12,121 shares during the period. Institutional investors and hedge funds own 95.90% of the company’s stock.

About Rackspace Technology (Get Rating)

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

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

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