Rackspace Technology Inc. RXT,
Shares gained more in an extended session on Monday after the initial decline, as the cloud-technology services company recorded its first earnings since its initial public offering.
Shares of Rackspace, which were down by 7% after hours, were up 2% in the extended session. The stock closed at $ 21.35, up 10.5% in the regular session following ratings issued by at least three analysts on Monday.
Revenue increased to $ 656.5 million from $ 602.4 million in the year-ago quarter. Analysts polled by FactSet estimated a share of 15 cents on revenue of $ 656.5 million.
Rackspace expects full-year adjusted earnings of 75 cents to 81 cents per share, while analysts projected 77 cents per share.
At the end of Monday, Rackspace’s stock was slightly higher than its $ 21 IPO price compared to a month earlier.