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RXT to Report Q4 Earnings: What's in the Offing for the Stock?

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Rackspace Technology (RXT - Free Report) is scheduled to report its fourth-quarter 2024 results on Feb. 20, after market close.

See Zacks Earnings Calendar to stay ahead of market-making news.

The company has an impressive earnings surprise history. It beat the Zacks Consensus Estimate in the trailing four quarters, delivering an average earnings surprise of 29.4%.

Rackspace Technology, Inc. Price, Consensus and EPS Surprise

 

Rackspace Technology’s Q4 Expectations

The Zacks Consensus Estimate for RXT’s revenues in the to-be-reported quarter is pegged at $675.2 million, indicating a 6.2% year-over-year decrease.

The consensus estimate for revenues from Public Cloud is pegged at $413.3, suggesting a 5% year-over-year fall. Reduced cloud infrastructure volumes are anticipated to have affected this segment’s revenues.

The Zacks Consensus Estimate for Private Cloud revenues is pegged at $261.8 million, indicating a year-over-year decline of 8%. We expect customers moving away from older-generation private cloud offerings to have led to the downfall in this segment’s revenues.

The consensus estimate for the bottom line in the to-be-reported quarter is 4 cents per share, hinting at a 33.3% decrease from the year-ago quarter’s actual. We expect the decline in revenues to have affected the bottom line.

What Our Model Says About RXT

Our proven model does not conclusively predict an earnings beat for Rackspace Technology this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. You can uncover the best stocks before they are reported with our Earnings ESP Filter.

RXT currently has an Earnings ESP of 0.00% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are a few stocks that, according to our model, have the right combination of elements to beat on earnings this season.

Block, Inc. (XYZ - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter 2024 revenues is pegged at $6.2 billion, indicating year-over-year growth of 8%. For earnings, the consensus mark is pegged at 83 cents, suggesting an 84.4% surge from the year-ago quarter’s reported figure. The company beat the consensus estimate in three of the past four quarters and missed once, with an average surprise of 9.3%.

XYZ carries an Earnings ESP of +4.24% and a Zacks Rank of 3 at present.

The company is scheduled to declare its fourth-quarter 2024 results on Feb. 20.

Opendoor Technologies Inc. (OPEN - Free Report) : The Zacks Consensus Estimate for fourth-quarter 2024 revenues is pegged at $965 million, indicating growth of 10.9% from the year-ago quarter’s actual. The consensus mark for loss is pegged at 14 cents per share compared with the year-ago quarter’s loss of 15 cents. The company surpassed the consensus estimate in the past four quarters, with an average beat of 34.6%.

OPEN has an Earnings ESP of +11.11% and a Zacks Rank of 3 at present. It is scheduled to declare its fourth-quarter 2024 results on Feb. 27.


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