Rackspace Technology Earnings: RXT Stock Falls 7% Following Q2 Results

Rackspace Technology (NASDAQ:RXT) earnings for the cloud company’s second quarter of 2020 have RXT stock falling after markets closed on Monday. This comes after reporting adjusted earnings per share of 21 cents on revenue of $656.5 million.

Image of computer servers lined up in a dark room

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Here’s what else is worth mentioning from the most recent Rackspace Technology earnings report.

  • Revenue for the quarter is sitting 9% higher than the $602.4 million reported during the same period of the year prior.
  • Operating income of $22.7 million is an 11.3% decline year-over-year from $25.6 million.
  • The Rackspace Technology earnings report also has its net loss coming in at $32.6 million.
  • That’s a negative change compared to the company’s net income of $62.5 million reported from the same time last year.

Kevin Jones, CEO of Rackspace Technology, said the following in the earnings report.

“We are proud and very excited to report our second quarter results following our IPO earlier this month. The quarter was highlighted by accelerating revenue growth driven by our ramping sales bookings growth over the past year. This quarter’s impressive 107% growth in sales bookings further validates our conviction in the massive opportunity presented by the tectonic shift to multicloud.”

Rackspace Technology also includes guidance for the full year of 2020 in its earnings report. It’s expecting adjusted EPS for the year to range from 75 cents to 81 cents. RXT is also looking for YOY revenue growth between 9% and 10% for 2020.

RXT stock was down 6.7% after-hours Monday but closed out normal trading hours up 10.5%.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Article printed from InvestorPlace Media, https://investorplace.com/2020/08/rackspace-technology-earnings-hit-rxt-stock/.

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