Rackspace Hosting (NYSE: RAX ) is expected to report Q4 earnings on Feb. 12. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Rackspace Hosting's revenues will grow 25.5% and EPS will grow 22.2%.
The average estimate for revenue is $355.4 million. On the bottom line, the average EPS estimate is $0.22.
Last quarter, Rackspace Hosting chalked up revenue of $336.0 million. GAAP reported sales were 27% higher than the prior-year quarter's $264.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Last quarter, EPS came in at $0.19. GAAP EPS of $0.19 for Q3 were 36% higher than the prior-year quarter's $0.14 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 72.5%, 270 basis points better than the prior-year quarter. Operating margin was 13.5%, 180 basis points better than the prior-year quarter. Net margin was 8.1%, 50 basis points better than the prior-year quarter.
The full year's average estimate for revenue is $1.31 billion. The average EPS estimate is $0.76.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 922 members out of 1,002 rating the stock outperform, and 80 members rating it underperform. Among 245 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 217 give Rackspace Hosting a green thumbs-up, and 28 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 $59.48.
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