Rackspace Technology Earnings Guidance
Rackspace Technology Inc (NYSE:RXT) has revised its first-quarter earnings guidance, providing insights into its financial outlook for the period. The company anticipates an EPS guidance range of ($0.14)-($0.12), differing slightly from the consensus EPS estimate of ($0.13). Similarly, Rackspace Technology offered revenue guidance ranging between $680 million and $690 million, compared to the market’s consensus revenue estimate of $684.21 million.
Rackspace Technology Earnings Guidance and Market Reaction
On Wednesday, Rackspace Technology’s stock experienced notable activity, trading up by $0.18 to reach $1.82. The trading volume reached 1,091,258 shares, slightly below the average volume of 1,436,963 shares. The stock’s market capitalization stands at $398.86 million, with a PE ratio of -0.46 and a beta of 1.94. Rackspace Technology has seen a fluctuation between a twelve-month low of $1.05 and a high of $3.10.
Quarterly Earnings Review
In its last quarterly earnings report released on March 12th, Rackspace Technology reported an EPS of ($0.03) for the quarter, surpassing the consensus estimate of ($0.04). The company generated revenue of $720 million, slightly exceeding the consensus estimate of $714.74 million. Although Rackspace Technology demonstrated improvements in revenue and EPS, it reported a negative return on equity of 10.18% and a negative net margin of 28.33%.
Analyst Ratings and Investor Sentiment
Various equity analysts have assessed Rackspace Technology’s performance and issued ratings. Notably, BMO Capital Markets raised its price target from $1.50 to $2.50 and assigned a market perform rating to the company. Conversely, Evercore ISI downgraded Rackspace Technology’s price target from $3.00 to $2.00 but maintained an in-line rating. Overall, the stock holds an average rating of Hold, with a consensus target price of $2.31.
Insider Transactions and Institutional Ownership
Recent insider transactions have been recorded, including CEO Amar Maletira’s sale of 37,446 shares at an average price of $1.92. Additionally, EVP Brian Lillie sold 139,701 shares at an average price of $1.62. Institutional investors have also shown interest in Rackspace Technology, with notable increases in holdings by firms like Sei Investments Co. and Point72 Hong Kong Ltd.
Institutional investors and hedge funds now own a significant portion, accounting for 82.48% of the company’s stock. These actions reflect both insider and institutional sentiment towards Rackspace Technology and may influence future market dynamics.
The updated earnings guidance provided by Rackspace Technology offers valuable insights into the company’s financial trajectory and underscores its commitment to transparency amid market uncertainties.
