Rackspace stock rises after first post-IPO earnings

Rackspace Technology Inc. RXT,
+ 10.45%
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.

The company reported a second-quarter loss of $ 32.6 million, or 20 cents per share, net income of $ 62.5 million, or 38 cents per share in the year-ago period. Adjusted earnings, which did not include stock-based compensation expense and other items, were 21 cents per share.
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.


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