RXT Earnings Prediction
The chart below shows how RXT performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RXT sees a -0.33% change in stock price 10 days leading up to the earnings, and a -8.83% change 10 days following the report. On the earnings day itself, the stock moves by -0.05%. This data can give you a slight idea of what to expect for the next quarter's release.
RXT Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
675.80M
-7.73%
-1.33%
Gross Margin
20.35%
-1.93%
6.04%
Operating Margin
-3.17%
147.66%
-43.59%
Net Margin
-27.61%
-10.76%
-856.44%
EPS
-0.82
-21.90%
-845.45%
No Data Available
RXT Earnings Analysis
Rackspace Technology, Inc. Common Stock Corporation (RXT.O) Earnings Conference Call
Positive
Consistent Revenue Performance: 1. Consistent Revenue Growth: Rackspace reported total GAAP revenue of $676 million for Q3 2024, exceeding the midpoint of their guidance and marking the ninth consecutive quarter of meeting or exceeding guidance.
Record Bookings Growth: 2. Strong Bookings Performance: Public Cloud achieved record bookings in Q3, with high double-digit growth both sequentially and year-over-year, indicating robust demand and operational success.
Healthcare Cloud Revenue Surge: 3. Healthcare Sector Expansion: The Private Cloud revenue in the healthcare sector is projected to increase by nearly 30% year-over-year for fiscal 2024, driven by significant new customer acquisitions and successful migrations.
Operating Margin Improvement: 4. Improved Operating Margins: Non-GAAP operating profit reached $34 million, exceeding the high end of guidance, with non-GAAP operating margin improving to 5.1%, up 180 basis points sequentially.
Cash Flow Performance: 5. Strong Cash Flow Generation: Rackspace generated $52 million in cash flow from operations and $27 million in free cash flow during Q3, demonstrating solid financial health and liquidity.
Negative
Private Cloud Revenue Decline: 1. Declining Private Cloud Revenue: Private Cloud GAAP revenue was $258 million, slightly down sequentially, indicating a 1% decrease due to customers rolling off older generation offerings.
Cloud Revenue Decline: 2. Public Cloud Revenue Decrease: Public Cloud GAAP revenue was $418 million, down 2% sequentially, primarily due to lower cloud infrastructure volumes, despite achieving record bookings.
Lower Margin Resale Impact: 3. Lower Margin Infrastructure Resale Impact: The impact of lower-margin infrastructure resale contracts and associated pass-through costs negatively affected overall revenue, as highlighted in the earnings presentation.
Revenue Guidance Decline: 4. Sequential Revenue Guidance Decline: The guidance for fourth quarter GAAP revenue is projected to be $668 million to $680 million, indicating a slight sequential decline at the midpoint.
Projected Non-GAAP Loss: 5. Non-GAAP Loss Per Share: The expected non-GAAP loss per share for the fourth quarter is projected to be between $0.03 to $0.05, reflecting ongoing financial challenges despite operational improvements.
RXT FAQs
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RXT Earning Call Sentiment
Rackspace Technology, Inc. (RXT) Q3 2024 Earnings Call Transcript
1.0x
00:00
00:00
RXT.O
-8.02%Positive
The earnings call summary presents a mixed picture. Financial performance is within guidance but shows sequential declines in key areas like public cloud revenue. Management's optimistic guidance is tempered by operational risks and competitive pressures. The Q&A section highlights potential growth in healthcare and sovereign markets but lacks specific revenue contributions. Absence of shareholder returns and deal timing delays are concerning. Overall, the lack of strong positive catalysts and existing risks lead to a neutral sentiment, anticipating limited stock price movement in the short term.
