Rackspace Technology Co., Ltd. (NASDAQ:RXT) reported upbeat fourth-quarter results, but issued lower-than-expected first-quarter guidance. The company announced a refinancing transaction.
Rackspace Tech posted an adjusted loss of 3 cents per share, compared to market expectations for a loss of 4 cents per share. The company had quarterly revenue of $720 million, compared to expected revenue of $714.72 million, according to data from Benzinga Pro.
CEO Amar Maretila said: Fiscal year 2023 was a transition period, and we focused on implementing structural changes to accelerate our turnaround, reallocating rack space to take advantage of emerging technology inflection points, and strengthening our capital structure. . I'm happy with my progress this year. ”
For the first quarter, Rackspace Tech said it expects an adjusted loss of 14 cents to 12 cents per share, compared to an expected loss of 4 cents per share. The company expects first-quarter sales to be between $680 million and $690 million, compared to the expected $709.378 million.
Rackspace Tech shares were down 16.6% on Wednesday, trading at $1.84.
These analysts changed their price targets for Rackspace Tech following the merger news.
- Evercore ISI Group Lowered Rackspace Tech's price target from $3 to $2. Evercore ISI Group analyst Amit Daryanani maintained his Inline rating.
- BMO Capital Raised Rackspace Tech's price target from $1.5 to $2.5. BMO Capital analyst Keith Bachman maintained a Market Perform rating.
- raymond james Lowered Rackspace Tech's price target from $3.5 to $3. Raymond James analyst Frank Roussin maintained an Outperform rating.
Read this now: Will NVIDIA recover by about 20%? Click here for Wednesday's top 10 forecasts
