SAN ANTONIO - Rackspace Technology Inc . (NASDAQ:RXT) shares jumped 5.2% in after-hours trading on Tuesday after the cloud services provider reported third-quarter results that beat expectations and issued better-than-expected guidance for the fourth quarter.
The company posted adjusted earnings per share of -$0.04 for Q3, topping the analyst consensus estimate of -$0.07. Revenue came in at $676 million, slightly above the $675.14 million analysts were expecting.
While revenue declined 7.7% YoY, Rackspace's outlook for Q4 impressed investors. The company forecast Q4 revenue of $668-$680 million, above the $671.1 million consensus. It also projected Q4 adjusted EPS between -$0.03 and -$0.05, compared to analysts' -$0.05 estimate.
"Our third-quarter results exceeded the midpoint of our guidance for revenue, operating profit, and EPS," said CEO Amar Maletira. "Bookings grew double digits with Public Cloud posting a record bookings quarter since the formation of the two business units."
Public Cloud revenue fell 3% YoY to $418 million in Q3, while Private Cloud revenue dropped 14% to $258 million. The company said it's making "steady progress" in both business segments.
For Q4, Rackspace expects Private Cloud revenue of $258-$264 million and Public Cloud revenue of $410-$416 million.
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