Rackspace Technology (NASDAQ:RXT) Updates Q2 2022 Earnings Guidance

Rackspace Technology (NASDAQ:RXTGet Rating) issued an update on its second quarter 2022 earnings guidance on Tuesday morning. The company provided earnings per share guidance of $0.15-$0.17 for the period, compared to the consensus earnings per share estimate of $0.23. The company issued revenue guidance of $744.00 million-$752.00 million, compared to the consensus revenue estimate of $800.71 million.

NASDAQ:RXT opened at $9.21 on Tuesday. Rackspace Technology has a 1-year low of $7.28 and a 1-year high of $21.50. The company has a 50-day moving average of $10.36 and a 200 day moving average of $12.20. The company has a quick ratio of 1.23, a current ratio of 1.23 and a debt-to-equity ratio of 2.75.

Rackspace Technology (NASDAQ:RXTGet Rating) last released its quarterly earnings data on Tuesday, May 10th. The company reported $0.22 earnings per share for the quarter, topping analysts’ consensus estimates of $0.21 by $0.01. Rackspace Technology had a negative net margin of 6.30% and a positive return on equity of 14.99%. The company had revenue of $775.50 million during the quarter, compared to analyst estimates of $774.45 million. During the same period in the prior year, the firm earned $0.23 earnings per share. The firm’s revenue for the quarter was up 6.8% compared to the same quarter last year. As a group, analysts expect that Rackspace Technology will post 0.75 EPS for the current fiscal year.

Several analysts have commented on RXT shares. Citigroup decreased their price target on shares of Rackspace Technology from $16.00 to $13.00 in a research report on Wednesday, May 11th. Deutsche Bank Aktiengesellschaft lowered shares of Rackspace Technology from a buy rating to a hold rating and decreased their price target for the company from $21.00 to $9.00 in a research report on Wednesday, February 23rd. Raymond James raised shares of Rackspace Technology from a market perform rating to an outperform rating and set a $12.00 price target for the company in a research report on Wednesday, May 11th. Oppenheimer lowered shares of Rackspace Technology from an outperform rating to a market perform rating in a research report on Friday, April 8th. Finally, BMO Capital Markets lowered shares of Rackspace Technology from an outperform rating to a market perform rating and decreased their price target for the company from $18.00 to $10.50 in a research report on Wednesday, February 23rd. One equities research analyst has rated the stock with a sell rating, five have assigned a hold rating and five have given a buy rating to the company’s stock. According to data from MarketBeat.com, Rackspace Technology has a consensus rating of Hold and an average target price of $15.68.

A number of large investors have recently modified their holdings of RXT. Bank of America Corp DE increased its holdings in Rackspace Technology by 156.0% in the 2nd quarter. Bank of America Corp DE now owns 38,476 shares of the company’s stock worth $755,000 after buying an additional 23,448 shares during the period. Morgan Stanley boosted its position in Rackspace Technology by 22.8% in the 2nd quarter. Morgan Stanley now owns 802,091 shares of the company’s stock worth $15,728,000 after purchasing an additional 148,800 shares in the last quarter. LPL Financial LLC boosted its position in Rackspace Technology by 30.7% in the 3rd quarter. LPL Financial LLC now owns 63,863 shares of the company’s stock worth $908,000 after purchasing an additional 15,007 shares in the last quarter. Bank of New York Mellon Corp boosted its position in Rackspace Technology by 23.1% in the 3rd quarter. Bank of New York Mellon Corp now owns 329,292 shares of the company’s stock worth $4,682,000 after purchasing an additional 61,838 shares in the last quarter. Finally, Charles Schwab Investment Management Inc. boosted its position in Rackspace Technology by 1.7% in the 4th quarter. Charles Schwab Investment Management Inc. now owns 424,534 shares of the company’s stock worth $5,719,000 after purchasing an additional 6,963 shares in the last quarter. Institutional investors 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.

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

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