Rackspace Technology Share Price Drops 12% Following Q4 Results
<p><a href='https://financialmodelingprep.com/financial-summary/RXT'>Rackspace Technology, Inc. (NASDAQ:RXT) </a>shares closed more than 12% lower on Wednesday following the company’s reported Q4 results. While the results came in slightly better than the Street expectations (EPS of $0.25 vs. Street’s $0.24 and Revenue of $777 million vs. Street’s $771.22 million), the 2022 guidance was well below expectations for revenue growth, margins, and FCF.</p>
<p>According to the analysts at Deutsche Bank, the positive during the earnings call was the company’s expectation of revenue growth to ramp through the year to double digits for 2022 after starting soft in Q1/22. However, the analysts believe that margins and FCF will continue to suffer near term with no credible reason to believe these negative trends will change on the horizon.</p>
<p>As a result, the analysts lowered their 2022/2023 EPS by $0.13/$0.21 to $0.98/$1.14 and introduced a 2024 EPS of $1.31. The analysts downgraded the company to hold from buy and lowered their price target to $9 from $21.</p>

NASDAQ:RXT