Rackspace Technology (RXT) Tops Q1 EPS by 1c, Guides Below Views; Evaluating Strategic Alternatives

Rackspace Technology (NASDAQ: RXT) reported Q1 EPS of $0.22, $0.01 better than the analyst estimate of $0.21. Revenue for the quarter came in at $776 million versus the consensus estimate of $774.49 million.

Mr. Jones added, “Rackspace Technology recently completed an in-depth strategic review of our company. As we completed this strategic review, and also based on inbound interest for one of our businesses, we concluded that a sum of the parts valuation of Rackspace Technology could be greater than our current enterprise value. This is in part driven by the attractive growth profile of Public Cloud. Accordingly, we are evaluating strategic alternatives and options. We will provide further information as appropriate in light of developments.”

GUIDANCE:

Rackspace Technology sees Q2 2022 EPS of $0.15-$0.17, versus the consensus of $0.23. Rackspace Technology sees Q2 2022 revenue of $780-790 million, versus the consensus of $800.7 million.

For earnings history and earnings-related data on Rackspace Technology (RXT) click here.

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