Applied Micro Circuits (Nasdaq: AMCC) is expected to report Q1 earnings on 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 Applied Micro Circuits' revenues will wither -34.2% and EPS will shrink to a loss.

The average estimate for revenue is $40.1 million. On the bottom line, the average EPS estimate is -$0.20.

Revenue details
Last quarter, Applied Micro Circuits logged revenue of $48.8 million. GAAP reported sales were 17% lower than the prior-year quarter's $58.6 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, non-GAAP EPS came in at -$0.10. GAAP EPS were -$1.10 for Q4 against -$0.06 per share for the prior-year quarter.

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 57.0%, 50 basis points better than the prior-year quarter. Operating margin was -30.8%, 1,840 basis points worse than the prior-year quarter. Net margin was -138.6%, 13,180 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $208.0 million. The average EPS estimate is -$0.50.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 121 members out of 154 rating the stock outperform, and 33 members rating it underperform. Among 27 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 19 give Applied Micro Circuits a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Applied Micro Circuits is outperform, with an average price target of $9.79.

Over the decades, small-cap stocks, like Applied Micro Circuits have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.