|Bid||0.00 x 1800|
|Ask||0.00 x 2200|
|Day's Range||95.03 - 95.95|
|52 Week Range||76.91 - 141.10|
|Beta (5Y Monthly)||1.17|
|PE Ratio (TTM)||12.79|
|Earnings Date||Oct 13, 2020|
|Forward Dividend & Yield||3.60 (3.75%)|
|Ex-Dividend Date||Jul 02, 2020|
|1y Target Est||115.00|
Q2 2020 JPMorgan Chase & Co Earnings Call
(Bloomberg) -- Rackspace Technology Inc., the cloud-service provider backed by Apollo Global Management Inc., raised $704 million in a U.S. initial public offering priced at the bottom of the marketed range.The company sold 33.5 million shares for $21 apiece, it said in a statement confirming an earlier report by Bloomberg. The shares were marketed at $21 to $24 in the IPO, which was oversubscribed according to people familiar with the matter who asked not to be identified because it wasn’t public.Rackspace is valued in the listing at about $4.2 billion based on the outstanding shares listed in its filings with the U.S. Securities and Exchange Commission. Including debt, cash and other considerations, the company has an enterprise value of $7.6 billion, the people said.When it was taken private by Apollo in 2016, the company was valued at $4.3 billion including debt at the time.The San Antonio, Texas-based company estimates its net loss for the second quarter will be $24 million to $44 million on revenue of $655 million to $657 million, its listing documents show.Rackspace designs and operates its customers’ cloud platforms. It has more than 120,000 customers across 120 countries and about 6,800 employees, which the company calls “Rackers.”Investors buying Rackspace shares include BlackRock Inc., Fidelity and Norges Bank Investment Management, according to a person with knowledge of the matter. A spokesperson for Fidelity declined to comment. Representatives for BlackRock and Norges Bank didn’t immediately respond to requests for comment.Apollo will retain 65.1% of the voting power in Rackspace after the listing, the filings show.Goldman Sachs Group Inc., Citigroup Inc. and JPMorgan Chase & Co. are leading the offering. Apollo Global Securities, an affiliate of the private equity firm that backs Rackspace, is also an underwriter. Rackspace’s shares are expected to begin trading Wednesday on the Nasdaq Global Select Market under the symbol RXT.(Updates with statement in second paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Nikola Corp.’s first earnings report was a bumpy one, with executives and analysts trading barbs and investors sending the electric-truck maker’s shares plunging.The stock fell 18% in late trading after the company, which develops big rigs that run on batteries and fuel cells, said it lost $86.64 million in the second quarter, a five-times greater net loss than a year ago.Within minutes of Nikola releasing its statement, its founder Trevor Milton was tweeting that the Phoenix-based company had provided analysts figures on the company’s share count. He wrote that taking those figures into account, the manufacturer beat expectations, contrary to some who said it fell short.Analysts responded in kind by pressing Chief Executive Officer Mark Russell on Nikola’s earnings call for more information on new customers, production timing and any confirmation of a partnership with a manufacturer that will build the company’s electric pickup model, called the Badger.“So, Mark, I just wonder, is this all we get?” Paul Coster, an analyst at JPMorgan who rates Nikola the equivalent of a buy, said to Russell. Jeff Osborne of Cowen said trying to follow timelines Milton has been communicating on social media has been “a bit confusing.” Nikola hopes to begin testing the battery-electric version of its first semi truck, the Tre, with select customers in 2021. The company has a joint venture with CNH Industrial NV’s Iveco truck unit to start limited production of the vehicle in Ulm, Germany, at the end of next year. Trucks powered by hydrogen fuel cells will be built in Coolidge, Arizona, starting in 2023, where the company broke ground on its first U.S. manufacturing plant last week.Russell declined during the call to name any new customers beyond Anheuser-Busch InBev SA, which has previously announced ordering 800 fuel-cell semis. In a phone interview, Russell said the company has potential buyers around the world.“We had a fleet week in Europe where we bring the customers in, and we have had representatives of a good chunk of the market in our headquarters,” Russell said. “A good chunk of the target customers have been to see us. We’ve been in conversation with them for some time.”Nikola listed its shares in early June following a reverse merger with a special purpose acquisition company and quickly saw its market capitalization surge to almost $29 billion, at one point surpassing Ford Motor Co.’s valuation. Lordstown Motors Corp. and Fisker Inc. are now trying to follow suit.After ending the quarter with $707.3 million in cash and equivalents, Milton said in an interview that Nikola’s focus will be on financial prudence as it brings products to market. The company expects to raise another $264.5 million by redeeming stock warrants.“We run a really tight ship here and we do spend money, but only when it’s needed,” Milton said. “That’s why we’re going to succeed and others have failed. They spent money like it’s just handed out.”(Updates with founder’s tweets starting in the third paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.