Rackspace Technology (NASDAQ:RXT) Issues Earnings Results

Rackspace Technology (NASDAQ:RXT) released its earnings results on Tuesday. The company reported ($0.04) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.03, Briefing.com reports. The business had revenue of $675.80 million for the quarter, compared to analysts’ expectations of $675.14 million. Rackspace Technology’s quarterly revenue was down 7.7% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.04) EPS. Rackspace Technology updated its Q4 guidance to $(0.05)-(0.03) EPS and its Q4 2024 guidance to -0.050–0.030 EPS.

Rackspace Technology Stock Performance

Shares of RXT stock traded down $0.24 on Friday, hitting $2.42. The stock had a trading volume of 1,642,995 shares, compared to its average volume of 1,110,526. Rackspace Technology has a 52-week low of $1.22 and a 52-week high of $3.41. The stock’s 50 day moving average is $2.55 and its 200-day moving average is $2.39. The firm has a market capitalization of $550.72 million, a price-to-earnings ratio of -0.69 and a beta of 1.97.

Wall Street Analysts Forecast Growth

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

Insider Activity at Rackspace Technology

In other Rackspace Technology news, CEO Amar Maletira sold 84,823 shares of the business’s stock in a transaction dated Monday, September 30th. The shares were sold at an average price of $2.42, for a total transaction of $205,271.66. Following the sale, the chief executive officer now directly owns 5,158,399 shares in the company, valued at approximately $12,483,325.58. The trade was a 1.62 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders have sold 227,321 shares of company stock valued at $542,103 over the last ninety days. Corporate 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.