Rackspace Technology (NASDAQ:RXT) Issues FY 2021 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) updated its FY 2021 earnings guidance on Tuesday. The company provided EPS guidance of $0.950-1.050 for the period, compared to the Thomson Reuters consensus EPS estimate of $1.010. The company issued revenue guidance of $2.70 billion-2.90 billion, compared to the consensus revenue estimate of $3.02 billion.Rackspace Technology also updated its Q2 2021 guidance to $0.210-0.230 EPS.

A number of brokerages have recently issued reports on RXT. Zacks Investment Research upgraded shares of Rackspace Technology from a sell rating to a hold rating in a research report on Tuesday, May 25th. William Blair began coverage on shares of Rackspace Technology in a research report on Wednesday, March 31st. They issued an outperform rating on the stock. Finally, Raymond James upgraded shares of Rackspace Technology from an outperform rating to a strong-buy rating in a research report on Tuesday, May 18th. One research analyst has rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company. The stock presently has a consensus rating of Buy and a consensus target price of $27.95.

Shares of NASDAQ RXT traded up $0.11 during trading on Friday, hitting $20.97. The stock had a trading volume of 6,988 shares, compared to its average volume of 1,906,957. Rackspace Technology has a 12 month low of $15.25 and a 12 month high of $26.43. The company has a quick ratio of 1.12, a current ratio of 1.12 and a debt-to-equity ratio of 2.76. The firm has a market capitalization of $4.36 billion and a P/E ratio of -15.23. The company’s fifty day moving average price is $22.74.

Rackspace Technology (NASDAQ:RXT) last posted its earnings results on Monday, May 10th. The company reported $0.23 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.21 by $0.02. Rackspace Technology had a negative net margin of 9.41% and a positive return on equity of 14.18%. The firm had revenue of $725.90 million during the quarter, compared to analyst estimates of $724.67 million. During the same quarter in the prior year, the business posted $0.16 EPS. The business’s revenue was up 11.2% compared to the same quarter last year. On average, research analysts predict that Rackspace Technology will post 1 earnings per share for the current year.

In related news, CFO Amar Maletira purchased 5,419 shares of Rackspace Technology stock in a transaction that occurred on Thursday, May 13th. The stock was bought at an average price of $18.45 per share, for a total transaction of $99,980.55. Following the completion of the transaction, the chief financial officer now owns 1,048,619 shares in the company, valued at $19,347,020.55. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director Dhiren R. Fonseca sold 26,096 shares of the stock in a transaction dated Wednesday, June 9th. The shares were sold at an average price of $21.17, for a total transaction of $552,452.32. Following the transaction, the director now owns 38,240 shares of the company’s stock, valued at approximately $809,540.80. The disclosure for this sale can be found here. In the last quarter, insiders bought 14,798 shares of company stock valued at $274,954. Company insiders own 0.76% 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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