Auxilium Pharmaceuticals (Nasdaq: AUXL) is expected to report Q2 earnings on July 31. 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 Auxilium Pharmaceuticals' revenue will increase 12.4% and EPS will remain in the red.

The average estimate for revenue is $74.1 million. On the bottom line, the average EPS estimate is -$0.05.

Revenue details
Last quarter, Auxilium Pharmaceuticals logged revenue of $73.6 million. GAAP reported sales were 26% higher than the prior-year quarter's $58.4 million.

My

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 -$0.04. GAAP EPS were -$0.04 for Q1 against -$0.25 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 77.4%, 340 basis points worse than the prior-year quarter. Operating margin was -2.6%, 1,750 basis points better than the prior-year quarter. Net margin was -2.4%, 1,790 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $305.0 million. The average EPS estimate is -$0.21.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 124 members out of 181 rating the stock outperform, and 57 members rating it underperform. Among 48 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 24 give Auxilium Pharmaceuticals a green thumbs-up, and 24 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Auxilium Pharmaceuticals is outperform, with an average price target of $21.92.

Over the decades, small-cap stocks like Auxilium Pharmaceuticals 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.