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.

Wall Street Analyst Weigh In

Several research analysts have recently commented on the company. Royal Bank of Canada reissued a sector perform rating and issued a $3.00 price target on shares of Rackspace Technology in a research report on Wednesday, March 13th. 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 report on Wednesday, March 13th. Evercore ISI reduced their target price on Rackspace Technology from $3.00 to $2.00 and set an in-line rating on the stock in a research report on Wednesday, March 13th. Finally, BMO Capital Markets upped their target price on Rackspace Technology from $1.50 to $2.50 and gave the company a market perform rating in a research report on Wednesday, March 13th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and two have assigned a buy rating to the company. According to data from MarketBeat, Rackspace Technology presently has a consensus rating of Hold and an average target price of $2.31.

Rackspace Technology Price Performance

Shares of RXT opened at $1.72 on Wednesday. Rackspace Technology has a 12 month low of $1.05 and a 12 month high of $3.10. The stock’s 50 day moving average is $1.76 and its two-hundred day moving average is $1.66.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Tuesday, March 12th. The company reported ($0.03) EPS for the quarter, beating the consensus estimate 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 for the quarter, compared to analyst estimates of $714.74 million. During the same period last year, the company earned $0.06 earnings per share. Rackspace Technology’s quarterly revenue was down 8.5% compared to the same quarter last year. On average, analysts forecast that Rackspace Technology will post -0.38 earnings per share for the current fiscal year.

Insider Transactions at Rackspace Technology

In related news, CEO Amar Maletira sold 37,446 shares of Rackspace Technology stock in a transaction that occurred on Tuesday, February 20th. The stock was sold at an average price of $1.92, for a total transaction of $71,896.32. Following the transaction, 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 document filed with the SEC, which is accessible through this link. Corporate insiders own 1.00% of the company’s stock.

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.