Rackspace Technology (NASDAQ:RXT) Releases Q1 2024 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its first quarter 2024 earnings guidance on Wednesday. The company provided earnings per share (EPS) guidance of -0.140–0.120 for the period, compared to the consensus 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 brokerages have recently commented on RXT. BMO Capital Markets boosted their target price on shares of Rackspace Technology from $1.50 to $2.50 and gave the company a market perform rating in a research report on Wednesday, March 13th. Evercore ISI lowered their price objective on shares of Rackspace Technology from $3.00 to $2.00 and set an in-line rating for the company in a research report on Wednesday, March 13th. Raymond James lowered their price objective on shares of Rackspace Technology from $3.50 to $3.00 and set an outperform rating for the company in a research report on Wednesday, March 13th. Finally, Royal Bank of Canada reiterated a sector perform rating and set a $3.00 price objective on shares of Rackspace Technology in a research report on Wednesday, March 13th. Two equities research analysts have rated the stock with a sell rating, four have given a hold rating and two have assigned a buy rating to the company’s stock. According to data from MarketBeat, Rackspace Technology currently has an average rating of Hold and a consensus price target of $2.31.

Rackspace Technology Price Performance

RXT opened at $1.83 on Friday. Rackspace Technology has a fifty-two week low of $1.05 and a fifty-two week high of $3.10. The company’s 50 day moving average price is $1.75 and its two-hundred day moving average price is $1.66.

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

Insiders Place Their Bets

In other news, CEO Amar Maletira sold 37,446 shares of the company’s stock in a transaction on 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 directly owns 4,638,423 shares of the company’s stock, valued at approximately $8,905,772.16. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. 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.