Kratos Defense & Security Solutions (Nasdaq: KTOS) is expected to report Q2 earnings on Aug. 2. 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 Kratos Defense & Security Solutions' revenues will grow 31.9% and EPS will shrink -178.6%.

The average estimate for revenue is $225.7 million. On the bottom line, the average EPS estimate is $0.11.

Revenue details
Last quarter, Kratos Defense & Security Solutions reported revenue of $215.0 million. GAAP reported sales were 75% higher than the prior-year quarter's $122.8 million.

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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 -$0.09. GAAP EPS were -$0.10 for Q1 compared to -$0.17 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 26.9%, 460 basis points better than the prior-year quarter. Operating margin was 4.2%, 170 basis points worse than the prior-year quarter. Net margin was -1.5%, 140 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $983.1 million. The average EPS estimate is $0.84.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 136 members out of 144 rating the stock outperform, and eight members rating it underperform. Among 30 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Kratos Defense & Security Solutions a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Kratos Defense & Security Solutions is outperform, with an average price target of $12.33.