Rackspace Technology (NASDAQ:RXT) Releases Q2 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its second quarter earnings guidance on Thursday. The company provided earnings per share guidance of ($0.09)-($0.11) for the period, compared to the consensus earnings per share estimate of ($0.11). The company issued revenue guidance of $668-$678 million, compared to the consensus revenue estimate of $675.70 million.

Rackspace Technology Stock Performance

Shares of RXT stock traded up $0.10 on Thursday, hitting $1.96. 2,489,527 shares of the company’s stock traded hands, compared to its average volume of 1,259,180. The company’s fifty day simple moving average is $1.73 and its 200 day simple moving average is $1.67. Rackspace Technology has a one year low of $1.05 and a one year high of $3.10. The stock has a market capitalization of $438.31 million, a price-to-earnings ratio of -0.50 and a beta of 1.83.

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

Analysts Set New Price Targets

A number of equities research analysts recently commented on RXT shares. BMO Capital Markets upped their price target on shares of Rackspace Technology from $1.50 to $2.50 and gave the company a market perform rating in a report on Wednesday, March 13th. Royal Bank of Canada restated a sector perform rating and set a $3.00 price target on shares of Rackspace Technology in a report 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 report on Wednesday, March 13th. Finally, Raymond James reduced their target price on Rackspace Technology from $3.50 to $3.00 and set an outperform rating on the stock in a research note on Wednesday, March 13th. Two research analysts have rated the stock with a sell rating, four have issued a hold rating and two have issued a buy rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of Hold and a consensus target price of $2.31.

Insider Activity at Rackspace Technology

In other Rackspace Technology news, CEO Amar Maletira sold 37,446 shares of the company’s stock in a transaction dated Tuesday, February 20th. The shares were sold at an average price of $1.92, for a total value of $71,896.32. Following the sale, the chief executive officer now owns 4,638,423 shares in the company, valued at $8,905,772.16. The sale was disclosed in a filing with the SEC, which is available through the SEC website. 1.00% of the stock is currently owned by corporate 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.