Rackspace Hosting (NYSE: RAX) is expected to report Q2 earnings on Aug. 7. Here's what Wall Street wants to see.

The 10-second takeaway
Comparing the upcoming quarter with the prior-year quarter, average analyst estimates predict Rackspace Hosting's revenues will increase 28.7% and EPS will grow 46.2%.

The average estimate for revenue is $318.2 million. On the bottom line, the average EPS estimate is $0.19.

Revenue details
Last quarter, Rackspace Hosting logged revenue of $301.4 million. GAAP reported sales were 31% higher than the prior-year quarter's $230.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, EPS came in at $0.17. GAAP EPS of $0.17 for Q1 were 70% higher than the prior-year quarter's $0.10 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 71.1%, 140 basis points better than the prior-year quarter. Operating margin was 12.3%, 190 basis points better than the prior-year quarter. Net margin was 7.7%, 170 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $1.32 billion. The average EPS estimate is $0.81.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 886 members out of 942 rating the stock outperform, and 56 members rating it underperform. Among 189 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 172 give Rackspace Hosting a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rackspace Hosting is outperform, with an average price target of $56.95.

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