Rackspace Technology (NASDAQ:RXT) Issues Q4 2024 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its fourth quarter 2024 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of -0.050–0.030 for the period, compared to the consensus estimate of -0.070. The company issued revenue guidance of $668.0 million-$680.0 million, compared to the consensus revenue estimate of $675.1 million. Rackspace Technology also updated its Q4 guidance to $(0.05)-(0.03) EPS.

Analysts Set New Price Targets

Separately, UBS Group boosted their target price on shares of Rackspace Technology from $2.10 to $2.30 and gave the company a “neutral” rating in a research note on Friday, August 16th. One investment analyst has rated the stock with a sell rating, four have given a hold rating and one has assigned a buy rating to the company. Based on data from MarketBeat.com, Rackspace Technology has a consensus rating of “Hold” and an average price target of $2.34.

Rackspace Technology Stock Down 9.0 %

RXT stock traded down $0.24 during midday trading on Friday, reaching $2.42. 226,757 shares of the company’s stock traded hands, compared to its average volume of 1,104,148. The company has a 50-day simple moving average of $2.54 and a two-hundred day simple moving average of $2.38. Rackspace Technology has a 1-year low of $1.22 and a 1-year high of $3.41. The company has a market cap of $550.72 million, a price-to-earnings ratio of -0.76 and a beta of 1.97.

Rackspace Technology (NASDAQ:RXT) last announced its earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.08) by $0.04. The business had revenue of $675.80 million during the quarter, compared to analyst estimates of $675.14 million. The business’s quarterly revenue was down 7.7% compared to the same quarter last year. During the same quarter last year, the business posted ($0.04) earnings per share. Equities research analysts forecast that Rackspace Technology will post -0.32 EPS for the current year.

Insiders Place Their Bets

In other Rackspace Technology news, CEO Amar Maletira sold 52,206 shares of the stock in a transaction on Wednesday, August 21st. The stock was sold at an average price of $2.35, for a total value of $122,684.10. Following the transaction, the chief executive officer now directly owns 5,347,434 shares in the company, valued at approximately $12,566,469.90. This trade represents a 0.97 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Over the last three months, insiders sold 227,321 shares of company stock valued at $542,103. Insiders own 2.00% 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.