Rackspace Technology (NASDAQ:RXT) Releases Q4 2021 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its fourth quarter 2021 earnings guidance on Monday. The company provided earnings per share (EPS) guidance of $0.230-$0.250 for the period, compared to the Thomson Reuters consensus estimate of $0.240. The company issued revenue guidance of $724 million-$732 million, compared to the consensus revenue estimate of $771.44 million.Rackspace Technology also updated its FY 2021 guidance to $0.950-$0.970 EPS.

A number of equities analysts have issued reports on the company. Raymond James lowered Rackspace Technology from a strong-buy rating to a market perform rating in a research note on Thursday, August 12th. BMO Capital Markets decreased their price target on Rackspace Technology from $23.00 to $17.00 and set an outperform rating for the company in a research note on Thursday, August 12th. Royal Bank of Canada decreased their price target on Rackspace Technology from $27.00 to $24.00 and set an outperform rating for the company in a research note on Thursday, August 12th. They noted that the move was a valuation call. Deutsche Bank Aktiengesellschaft decreased their price target on Rackspace Technology from $26.00 to $21.00 and set a buy rating for the company in a research note on Thursday, August 12th. Finally, Barclays downgraded Rackspace Technology from an overweight rating to an equal weight rating and cut their price objective for the company from $25.00 to $15.00 in a research report on Friday, August 13th. Four research analysts have rated the stock with a hold rating and seven have issued a buy rating to the company’s stock. According to data from MarketBeat, the stock presently has a consensus rating of Buy and an average price target of $22.15.

Rackspace Technology stock traded up $0.35 during mid-day trading on Thursday, hitting $15.57. 763,425 shares of the company’s stock were exchanged, compared to its average volume of 1,574,250. The company has a current ratio of 1.12, a quick ratio of 1.12 and a debt-to-equity ratio of 2.72. The stock has a market cap of $3.27 billion, a P/E ratio of -11.53, a P/E/G ratio of 1.19 and a beta of 0.90. Rackspace Technology has a 1-year low of $13.07 and a 1-year high of $26.43. The stock has a 50 day moving average of $14.61 and a two-hundred day moving average of $16.81.

Rackspace Technology (NASDAQ:RXT) last released its earnings results on Monday, November 15th. The company reported $0.25 earnings per share for the quarter, beating the Thomson Reuters’ consensus estimate of $0.24 by $0.01. Rackspace Technology had a negative net margin of 9.26% and a positive return on equity of 13.74%. The business had revenue of $763.00 million during the quarter, compared to analysts’ expectations of $756.03 million. During the same quarter last year, the company earned $0.19 earnings per share. The firm’s revenue was up 26.7% on a year-over-year basis. As a group, research analysts predict that Rackspace Technology will post 0.95 EPS for the current fiscal year.

A number of institutional investors and hedge funds have recently made changes to their positions in RXT. Morgan Stanley increased its holdings in shares of Rackspace Technology by 22.8% in the second quarter. Morgan Stanley now owns 802,091 shares of the company’s stock valued at $15,728,000 after purchasing an additional 148,800 shares in the last quarter. Bank of New York Mellon Corp grew its holdings in Rackspace Technology by 23.1% during the 3rd quarter. Bank of New York Mellon Corp now owns 329,292 shares of the company’s stock worth $4,682,000 after acquiring an additional 61,838 shares during the period. LPL Financial LLC grew its holdings in Rackspace Technology by 30.7% during the 3rd quarter. LPL Financial LLC now owns 63,863 shares of the company’s stock worth $908,000 after acquiring an additional 15,007 shares during the period. Finally, Bank of America Corp DE grew its holdings in Rackspace Technology by 156.0% during the 2nd quarter. Bank of America Corp DE now owns 38,476 shares of the company’s stock worth $755,000 after acquiring an additional 23,448 shares during the period. Hedge funds and other institutional investors own 86.82% of the company’s stock.

Rackspace Technology Company Profile

Rackspace Technology, Inc operates as a multi cloud technology services company worldwide. It operates through Multicloud Services and Apps & Cross Platform segments. The company's Multicloud Services segment provides public and private cloud managed services, which allow customers to determine, manage, and optimize the right infrastructure, platforms, and services; and professional services related to designing and building multi cloud solutions and cloud-native applications.

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Earnings History and Estimates for Rackspace Technology (NASDAQ:RXT)

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