Rackspace Hosting (NYSE: RAX) reported earnings on Feb. 13. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Rackspace Hosting beat slightly on revenues and met expectations on earnings per share.

Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share increased significantly.

Margins expanded across the board.

Revenue details
Rackspace Hosting reported revenue of $264.6 million. The 19 analysts polled by S&P Capital IQ foresaw a top line of $261.7 million on the same basis. GAAP reported sales were 32% higher than the prior-year quarter's $214.7 million.

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

EPS details
Non-GAAP EPS came in at $0.14. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.14 per share on the same basis. GAAP EPS of $0.18 for Q3 were 80% 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.

Margin details
For the quarter, gross margin was 70.8%, 190 basis points better than the prior-year quarter. Operating margin was 14.0%, 310 basis points better than the prior-year quarter. Net margin was 8.8%, 250 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $280.9 million. On the bottom line, the average EPS estimate is $0.16.

Next year's average estimate for revenue is $1.02 billion. The average EPS estimate is $0.53.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 778 members out of 835 rating the stock outperform, and 57 members rating it underperform. Among 236 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 221 give Rackspace Hosting a green thumbs-up, and 15 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 $47.13.

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