Rackspace Technology (NASDAQ:RXT) Issues Q2 2021 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) issued an update on its second quarter 2021 earnings guidance on Tuesday morning. The company provided EPS guidance of $0.210-0.230 for the period, compared to the Thomson Reuters consensus EPS estimate of $0.230. The company issued revenue guidance of $690 million-698 million, compared to the consensus revenue estimate of $735.04 million.Rackspace Technology also updated its FY 2021 guidance to $0.950-1.050 EPS.

NASDAQ RXT traded down $0.33 during trading hours on Thursday, reaching $20.84. The company’s stock had a trading volume of 31,189 shares, compared to its average volume of 1,917,723. The company’s fifty day simple moving average is $22.82. The firm has a market capitalization of $4.33 billion and a PE ratio of -15.28. Rackspace Technology has a 52 week low of $15.25 and a 52 week high of $26.43. The company has a debt-to-equity ratio of 2.76, a quick ratio of 1.12 and a current ratio of 1.12.

Rackspace Technology (NASDAQ:RXT) last issued its quarterly earnings data on Monday, May 10th. The company reported $0.23 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.21 by $0.02. The business had revenue of $725.90 million during the quarter, compared to analyst estimates of $724.67 million. Rackspace Technology had a negative net margin of 9.41% and a positive return on equity of 14.18%. The firm’s quarterly revenue was up 11.2% on a year-over-year basis. During the same quarter last year, the business earned $0.16 EPS. On average, sell-side analysts expect that Rackspace Technology will post 1 earnings per share for the current year.

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

In other news, CTO Tolga Tarhan sold 30,705 shares of the company’s stock in a transaction dated Thursday, May 13th. The shares were sold at an average price of $18.23, for a total value of $559,752.15. Following the sale, the chief technology officer now directly owns 76,578 shares of the company’s stock, valued at approximately $1,396,016.94. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Dhiren R. Fonseca sold 26,096 shares of the stock in a transaction that occurred on Wednesday, June 9th. The shares were sold at an average price of $21.17, for a total transaction of $552,452.32. Following the sale, the director now owns 38,240 shares in the company, valued at approximately $809,540.80. The disclosure for this sale can be found here. Insiders have acquired 14,798 shares of company stock worth $274,954 in the last 90 days. Company insiders own 0.76% of the company’s stock.

About Rackspace Technology

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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