Rackspace Hosting (NYSE: RAX ) is expected to report Q1 earnings on May 8. 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 21.8% and EPS will expand 23.5%.
The average estimate for revenue is $367.1 million. On the bottom line, the average EPS estimate is $0.21.
Last quarter, Rackspace Hosting reported revenue of $352.9 million. GAAP reported sales were 25% higher than the prior-year quarter's $283.3 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 $0.21. GAAP EPS of $0.21 for Q4 were 17% higher than the prior-year quarter's $0.18 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 73.0%, 220 basis points better than the prior-year quarter. Operating margin was 14.1%, 10 basis points better than the prior-year quarter. Net margin was 8.5%, 30 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $1.59 billion. The average EPS estimate is $0.99.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 980 members out of 1,048 rating the stock outperform, and 68 members rating it underperform. Among 230 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 207 give Rackspace Hosting a green thumbs-up, and 23 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rackspace Hosting is hold, with an average price target of $68.97.
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