Rackspace Technology (NASDAQ:RXT) Updates Q4 2024 Earnings Guidance

Rackspace Technology (NASDAQ:RXT) issued an update on its fourth quarter 2024 earnings guidance on Friday morning. The company provided earnings per share guidance of -0.050–0.030 for the period, compared to the consensus earnings per share estimate of -0.040. The company issued revenue guidance of $668.0 million-$680.0 million, compared to the consensus revenue estimate of $674.9 million.

Wall Street Analysts Forecast Growth

Separately, Barclays raised their price objective on Rackspace Technology from $1.00 to $2.00 and gave the stock an “underweight” rating in a research note on Monday, November 18th. One analyst has rated the stock with a sell rating, four have assigned a hold rating and one has given a buy rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and a consensus target price of $2.47.

Rackspace Technology Stock Performance

Shares of Rackspace Technology stock traded up $0.06 during trading hours on Friday, hitting $2.45. The company’s stock had a trading volume of 377,443 shares, compared to its average volume of 741,925. The company has a market cap of $556.41 million, a PE ratio of -0.70 and a beta of 2.02. The business has a 50 day moving average price of $2.45 and a two-hundred day moving average price of $2.46. Rackspace Technology has a 12-month low of $1.45 and a 12-month high of $3.41.

Rackspace Technology (NASDAQ:RXT) last posted its quarterly earnings results on Tuesday, November 12th. The company reported ($0.04) EPS for the quarter, topping analysts’ consensus estimates of ($0.07) by $0.03. The business had revenue of $675.80 million during the quarter, compared to analysts’ expectations of $675.14 million. During the same period in the prior year, the firm posted ($0.04) earnings per share. The firm’s revenue for the quarter was down 7.7% on a year-over-year basis. As a group, research analysts anticipate that Rackspace Technology will post -0.27 earnings per share for the current year.

Insider Transactions at Rackspace Technology

In related news, EVP Dharmendra Kumar Sinha sold 88,548 shares of the business’s stock in a transaction dated Friday, November 29th. The stock was sold at an average price of $2.67, for a total value of $236,423.16. Following the sale, the executive vice president now directly owns 2,334,166 shares in the company, valued at approximately $6,232,223.22. The trade was a 3.65 % decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CTO Srini Koushik sold 19,470 shares of the firm’s stock in a transaction that occurred on Friday, November 29th. The shares were sold at an average price of $2.67, for a total value of $51,984.90. Following the transaction, the chief technology officer now owns 1,026,279 shares of the company’s stock, valued at $2,740,164.93. This represents a 1.86 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 194,864 shares of company stock valued at $508,997. 2.00% of the stock is currently owned by corporate insiders.

About Rackspace Technology

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.