Rackspace Hosting (NYSE: RAX) reported earnings on May 8. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Rackspace Hosting met expectations on revenues and missed estimates on earnings per share.

Compared to the prior-year quarter, revenue grew significantly. GAAP earnings per share expanded.

Margins shrank across the board.

Revenue details
 Rackspace Hosting booked revenue of $362.2 million. The 20 analysts polled by S&P Capital IQ wanted to see a top line of $366.8 million on the same basis. GAAP reported sales were 20% higher than the prior-year quarter's $301.4 million.

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

EPS details
 EPS came in at $0.19. The 18 earnings estimates compiled by S&P Capital IQ anticipated $0.21 per share. GAAP EPS of $0.19 for Q1 were 12% higher than the prior-year quarter's $0.17 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 68.6%, 250 basis points worse than the prior-year quarter. Operating margin was 11.8%, 50 basis points worse than the prior-year quarter. Net margin was 7.5%, 20 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)

Looking ahead
 Next quarter's average estimate for revenue is $384.8 million. On the bottom line, the average EPS estimate is $0.19.

Next year's average estimate for revenue is $1.59 billion. The average EPS estimate is $0.83.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 983 members out of 1,048 rating the stock outperform, and 65 members rating it underperform. Among 234 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 213 give Rackspace Hosting a green thumbs-up, and 21 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 $63.96.

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