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Rackspace stock reverses to rise after hours on first post-IPO earnings

Rackspace Technology Inc.
RXT,
+10.45%

shares ticked higher in the extended session Monday, after an initial decline, as the cloud-technology services company reported its first earnings since its initial public offering.

Rackspace shares, which had been down as much as 7% after hours, were last up 2% in the extended session. That followed a 10.5% gain in the regular session to close at $21.35 after at least three analysts issued buy ratings on Monday.

The company reported a second-quarter loss of $32.6 million, or 20 cents a share, versus net income of $62.5 million, or 38 cents a share, in the year-ago period. Adjusted earnings, which excluded stock-based compensation expenses and other items, were 21 cents a share.

Revenue rose to $656.5 million from $602.4 million in the year-ago quarter. Analysts surveyed by FactSet had forecast earnings of 15 cents a share on revenue of $656.5 million.

Rackspace expects full-year adjusted earnings of 75 cents to 81 cents a share, while analysts had forecast 77 cents a share.

At Monday’s close, Rackspace’s stock was slightly above its $21 IPO pricing less than a month ago.

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