Rackspace stock sinks as it loses estimates

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Cloud service provider Rackspace Technology Inc. fell short of expectations across the board, even as CEO Kevin Jones said Thursday that the company’s fourth quarter “ended a fantastic year,” during which bookings and the income grew. Rackspace RXT, shares of + 1.55% fell more than 8.5% after hours, after rising 1.6% in the regular session to close at $ 24.96.

The San Antonio, Texas-based company reported a fourth-quarter loss of $ 64 million, or 32 cents a share, compared to a loss of $ 47 million, or 28 cents a share, in the same period of the year. previous. Adjusted earnings were 26 cents a share, adjusted for share-based compensation, bonuses and more. Revenues increased to $ 716 million from $ 627 million in the prior year quarter. Analysts surveyed by FactSet had forecast earnings of 31 cents a share on revenue of $ 765 million. For the full fiscal year, Rackspace lost $ 246 million, or $ 1.37 per share, compared to a loss of $ 102 million, or 62 cents per share in 2019. Adjusted earnings were 83 cents per share, adjusted for tax at deferred income, share-based compensation and more. Revenue increased to $ 2.7 billion, 11% more than 2019 revenue of $ 2.44 billion. Analysts had expected earnings of $ 1.13 a share on revenue of $ 2.94 billion. Rackspace said it expects full fiscal 2021 non-GAAP earnings of 95 cents to $ 1.05 per share on revenue of $ 2.9 billion to $ 3.1 billion.