Rackspace Technology, Inc. Q4 Results and Analyst Forecasts
Following the recent fourth-quarter results from Rackspace Technology, Inc. (NASDAQ:RXT), the company reported an adjusted loss of 3 cents per share, beating market expectations for a loss of 4 cents per share. Quarterly sales came in at $720.000 million, exceeding estimates of $714.720 million. CEO Amar Maletira highlighted the company’s progress in implementing structural changes and capitalizing on emerging technology trends.
Looking ahead to the first quarter, Rackspace Tech anticipates an adjusted loss of 14 to 12 cents per share, below analyst estimates of a loss of 4 cents per share. Revenue for the first quarter is projected to be $680 million to $690 million, falling short of estimates of $709.378 million. As a result, Rackspace Tech shares experienced a 16.6% decline, trading at $1.84 on Wednesday.
Analysts have revised their price targets for Rackspace Tech following the merger news. Evercore ISI Group lowered the price target from $3 to $2, maintaining an In-Line rating. BMO Capital raised the price target from $1.5 to $2.5, with a Market Perform rating. Raymond James decreased the price target from $3.5 to $3, while maintaining an Outperform rating.
Stay tuned for more updates on Rackspace Technology, Inc. as the company navigates through industry shifts and capitalizes on emerging technology trends.
