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

Rackspace Technology (NASDAQ:RXT – Get 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 $8.66 on Tuesday. 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 has a 1-year low of $7.28 and a 1-year high of $21.50. The firm has a market capitalization of $1.83 billion, a price-to-earnings ratio of -9.41, a price-to-earnings-growth ratio of 1.25 and a beta of 0.80. The stock has a fifty day simple moving average of $10.25 and a 200 day simple moving average of $12.02.

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

A number of equities research analysts have commented on the company. BMO Capital Markets lowered Rackspace Technology from an outperform rating to a market perform rating and decreased their price objective for the stock from $18.00 to $10.50 in a research report on Wednesday, February 23rd. Raymond James upgraded Rackspace Technology from a market perform rating to an outperform rating and set a $12.00 price objective for the company in a research report on Wednesday, May 11th. Citigroup decreased their price objective on Rackspace Technology from $16.00 to $13.00 in a research report on Wednesday, May 11th. Deutsche Bank Aktiengesellschaft lowered Rackspace Technology from a buy rating to a hold rating and decreased their price objective for the stock from $21.00 to $9.00 in a research report on Wednesday, February 23rd. Finally, Credit Suisse Group cut their price target on Rackspace Technology from $25.00 to $19.00 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 assigned a hold rating and five have issued a buy rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of Hold and a consensus price target of $15.68.

Hedge funds have recently modified their holdings of the stock. PNC Financial Services Group Inc. raised its stake in shares of Rackspace Technology by 693.1% in the 1st quarter. PNC Financial Services Group Inc. now owns 3,347 shares of the company’s stock valued at $37,000 after acquiring an additional 2,925 shares in the last quarter. Quantbot Technologies LP bought a new position in Rackspace Technology in the 1st quarter worth approximately $79,000. Vident Investment Advisory LLC increased its position in Rackspace Technology by 16.4% in the 1st quarter. Vident Investment Advisory LLC now owns 24,676 shares of the company’s stock worth $275,000 after buying an additional 3,475 shares during the period. MetLife Investment Management LLC increased its position in Rackspace Technology by 54.3% in the 1st quarter. MetLife Investment Management LLC now owns 29,831 shares of the company’s stock worth $333,000 after buying an additional 10,494 shares during the period. Finally, Credit Suisse AG increased its position in Rackspace Technology by 6.2% in the 4th quarter. Credit Suisse AG now owns 28,653 shares of the company’s stock worth $386,000 after buying an additional 1,674 shares during the period. 95.90% of the stock is currently owned by institutional investors and hedge funds.

Rackspace Technology Company Profile (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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