Rackspace Technology (NASDAQ:RXT) Updates Q4 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its fourth quarter earnings guidance on Tuesday. The company provided earnings per share guidance of $(0.05)-(0.03) for the period, compared to the consensus earnings per share estimate of ($0.05). The company issued revenue guidance of $668-680 million, compared to the consensus revenue estimate of $671.93 million. Rackspace Technology also updated its Q4 2024 guidance to -0.050–0.030 EPS.

Rackspace Technology Stock Performance

Shares of RXT traded down $0.24 during trading hours on Friday, hitting $2.42. 226,757 shares of the company were exchanged, compared to its average volume of 1,104,148. The company has a market cap of $550.72 million, a PE ratio of -0.76 and a beta of 1.97. The firm’s 50 day moving average is $2.54 and its 200-day moving average is $2.38. Rackspace Technology has a 52 week low of $1.22 and a 52 week high of $3.41.

Rackspace Technology (NASDAQ:RXT) last announced its earnings results on Tuesday, November 12th. The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.08) by $0.04. The company had revenue of $675.80 million for the quarter, compared to the consensus estimate of $675.14 million. During the same period in the previous year, the company earned ($0.04) EPS. The firm’s revenue for the quarter was down 7.7% compared to the same quarter last year. As a group, equities analysts forecast that Rackspace Technology will post -0.32 earnings per share for the current fiscal year.

Analysts Set New Price Targets

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

Insiders Place Their Bets

In other news, CEO Amar Maletira sold 52,206 shares of Rackspace Technology stock in a transaction dated Wednesday, August 21st. The shares were sold at an average price of $2.35, for a total transaction of $122,684.10. Following the sale, the chief executive officer now directly owns 5,347,434 shares in the company, valued at approximately $12,566,469.90. The trade was a 0.97 % decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. In the last quarter, insiders sold 227,321 shares of company stock worth $542,103. 2.00% of the stock is currently owned by company insiders.

About Rackspace Technology

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.