Rackspace (NASDAQ:RXT) stock is heading lower on Wednesday following the release of its earnings report for the fourth quarter of 2021.
The data from the earnings report pulling RXT stock down today comes from its outlook for the first quarter of 2021. The cloud computing company is expecting adjusted earnings per share between 20 cents and 22 cents. That’s not looking good compared to Wall Street’s estimate of 26 cents per share.
It’s not just the adjusted EPS estimate dragging RXT stock down today. The company’s revenue estimate of $768 million to $778 million for Q1 2022 is another black mark on the shares. That’s due to the high end still sitting below analysts’ revenue estimate of $789.48 million for the period.
It’s unfortunate that Rackspace’s guidance is so poor as it hinders an otherwise strong earnings report. Adjusted EPS of 25 cents and revenue of $777 million were both above Wall Street’s estimates of 24 cents per share and $771.22 million.
Kevin Jones, CEO of Rackspace, said the following in the Q4 earnings report.
“The fourth quarter was a strong conclusion to the year, and Rackspace Technology continued to execute on its mission to lead the cloud services market as a best-in-class, pure-play cloud solutions company. It was a record quarter for Bookings, and we met or exceeded all of our financial targets while driving strong cash flow from operations.”
RXT stock is experiencing heavy trading today alongside its earnings news. As a result, some 5 million shares have changed hands as of this writing. That’s a major increase over its daily average trading volume of about 840,000 shares.
RXT is down 15.9% as of Wednesday afternoon.
Investors on the lookout for more stock market news today are in luck!
There’s plenty of earnings news that traders will want to know about for Wednesday. Among that is the latest results moving shares of RingCentral (NYSE:RNG) stock, The Beauty Health Company (NASDAQ:SKIN) stock, and Palo Alto Networks (NASDAQ:PANW) stock today. You can read all of that news at the following links!
More Earnings News for Wednesday
- RNG Stock News: 18 Reasons Why Investors Are Hanging Up on Ring Central Today
- SKIN Stock: What’s Going on With The Beauty Health Company Today?
- Is PANW Stock a Buy After Earnings? 4 Analysts Weigh In on Palo Alto Networks.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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