Rackspace Hosting (NYSE: RAX) is expected to report Q3 earnings on Nov. 6. 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 expand 26.7% and EPS will grow 35.7%.

The average estimate for revenue is $335.2 million. On the bottom line, the average EPS estimate is $0.19.

Revenue details
Last quarter, Rackspace Hosting reported revenue of $319.0 million. GAAP reported sales were 29% higher than the prior-year quarter's $247.2 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 $0.18. GAAP EPS of $0.18 for Q2 were 38% higher than the prior-year quarter's $0.13 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 71.8%, 180 basis points better than the prior-year quarter. Operating margin was 12.8%, 120 basis points better than the prior-year quarter. Net margin was 7.9%, 80 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.31 billion. The average EPS estimate is $0.76.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 894 members out of 965 rating the stock outperform, and 71 members rating it underperform. Among 214 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 189 give Rackspace Hosting a green thumbs-up, and 25 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 $55.64.

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