William Blair Weighs in on Rackspace Technology, Inc.’s Q2 2022 Earnings (NASDAQ:RXT)

Rackspace Technology, Inc. (NASDAQ:RXT – Get Rating) – William Blair reduced their Q2 2022 EPS estimates for Rackspace Technology in a note issued to investors on Tuesday, May 10th. William Blair analyst J. Breen now anticipates that the company will post earnings of $0.16 per share for the quarter, down from their previous estimate of $0.22. William Blair also issued estimates for Rackspace Technology’s Q3 2022 earnings at $0.19 EPS, Q4 2022 earnings at $0.23 EPS, FY2022 earnings at $0.79 EPS and FY2023 earnings at $1.04 EPS.

Rackspace Technology (NASDAQ:RXT – Get Rating) last posted its quarterly earnings data on Tuesday, May 10th. The company reported $0.22 EPS for the quarter, beating the consensus estimate of $0.21 by $0.01. The firm had revenue of $775.50 million during the quarter, compared to the consensus estimate of $774.45 million. Rackspace Technology had a positive return on equity of 14.94% and a negative net margin of 6.30%. The firm’s revenue was up 6.8% compared to the same quarter last year. During the same period in the prior year, the business earned $0.23 EPS.

Other equities analysts have also recently issued research reports about the company. Deutsche Bank Aktiengesellschaft cut Rackspace Technology from a “buy” rating to a “hold” rating and dropped their target price for the stock from $21.00 to $9.00 in a research report on Wednesday, February 23rd. BMO Capital Markets cut Rackspace Technology from an “outperform” rating to a “market perform” rating and dropped their target price for the stock from $18.00 to $10.50 in a research report on Wednesday, February 23rd. Raymond James upgraded Rackspace Technology from a “market perform” rating to an “outperform” rating and set a $12.00 target price on the stock in a research report on Wednesday. Barclays dropped their target price on Rackspace Technology from $17.00 to $10.00 in a research report on Thursday, February 24th. Finally, Citigroup dropped their target price on Rackspace Technology from $16.00 to $13.00 in a research report on Wednesday. One investment analyst has rated the stock with a sell rating, five have issued a hold rating and five have assigned a buy rating to the company’s stock. According to data from MarketBeat, Rackspace Technology presently has a consensus rating of “Hold” and an average price target of $15.68.

RXT opened at $9.54 on Thursday. The business has a 50 day moving average price of $10.38 and a two-hundred day moving average price of $12.25. The company has a quick ratio of 1.18, a current ratio of 1.18 and a debt-to-equity ratio of 2.80. The company has a market cap of $2.02 billion, a PE ratio of -10.37, a P/E/G ratio of 0.93 and a beta of 0.80. Rackspace Technology has a 52 week low of $7.28 and a 52 week high of $21.50.

Several institutional investors and hedge funds have recently added to or reduced their stakes in RXT. Bank of America Corp DE grew its holdings in shares of Rackspace Technology by 156.0% in 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. Morgan Stanley grew its holdings in Rackspace Technology by 22.8% during the 2nd quarter. Morgan Stanley now owns 802,091 shares of the company’s stock valued at $15,728,000 after buying an additional 148,800 shares during the last quarter. SG Americas Securities LLC acquired a new stake in Rackspace Technology during the 3rd quarter valued at $321,000. BlackRock Inc. grew its holdings in Rackspace Technology by 8.0% during the 3rd quarter. BlackRock Inc. now owns 3,471,804 shares of the company’s stock valued at $49,369,000 after buying an additional 257,208 shares during the last quarter. Finally, Allianz Asset Management GmbH acquired a new stake in Rackspace Technology during the 3rd quarter valued at $1,181,000. Institutional investors and hedge funds own 95.90% of the company’s stock.

Rackspace Technology Company Profile (Get Rating)

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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