Warner Chilcott (Nasdaq: WCRX) is expected to report Q2 earnings on Aug. 3. Here's what Wall Street wants to see.

The 10-second takeaway
Comparing the upcoming quarter with the prior-year quarter, average analyst estimates predict Warner Chilcott's revenues will shrink -9.8% and EPS will drop -16.0%.

The average estimate for revenue is $604.9 million. On the bottom line, the average EPS estimate is $0.79.

Revenue details
Last quarter, Warner Chilcott reported revenue of $685.0 million. GAAP reported sales were 9.5% lower than the prior-year quarter's $757.0 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 $1.16. GAAP EPS were $0.45 for Q1 compared to -$0.10 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 89.5%, 200 basis points better than the prior-year quarter. Operating margin was 38.0%, 760 basis points better than the prior-year quarter. Net margin was 16.5%, 1,970 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.48 billion. The average EPS estimate is $3.42.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 137 members out of 166 rating the stock outperform, and 29 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Warner Chilcott 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 Warner Chilcott is outperform, with an average price target of $23.39.

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