Merck (NYSE: MRK) is expected to report Q2 earnings around July 26. 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 Merck's revenues will expand 0.2% and EPS will increase 7.4%.

The average estimate for revenue is $12.17 billion. On the bottom line, the average EPS estimate is $1.02.

Revenue details
Last quarter, Merck reported revenue of $11.73 billion. GAAP reported sales were 1.3% higher than the prior-year quarter's $11.58 billion.

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, non-GAAP EPS came in at $0.99. GAAP EPS of $0.56 for Q1 were 65% higher than the prior-year quarter's $0.34 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 65.6%, about the same as the prior-year quarter. Operating margin was 24.7%, 140 basis points better than the prior-year quarter. Net margin was 14.8%, 580 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $47.18 billion. The average EPS estimate is $3.82.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 2,698 members out of 2,907 rating the stock outperform, and 209 members rating it underperform. Among 753 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 712 give Merck a green thumbs-up, and 41 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Merck is outperform, with an average price target of $41.82.

Can your retirement portfolio provide you with enough income to last? You'll need more than Merck. Learn about crafting a smarter retirement plan in "The Shocking Can't-Miss Truth About Your Retirement." Click here for instant access to this free report.