Gap (NYSE: GPS) is expected to report Q2 earnings around Aug. 2. 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 Gap's revenues will expand 3.6% and EPS will expand 8.6%.

The average estimate for revenue is $3.51 billion. On the bottom line, the average EPS estimate is $0.38.

Revenue details
Last quarter, Gap reported revenue of $3.49 billion. GAAP reported sales were 5.8% higher than the prior-year quarter's $3.30 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, EPS came in at $0.47. GAAP EPS of $0.47 for Q1 were 18% higher than the prior-year quarter's $0.40 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 39.4%, 20 basis points worse than the prior-year quarter. Operating margin was 11.3%, 60 basis points worse than the prior-year quarter. Net margin was 6.7%, 40 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $15.27 billion. The average EPS estimate is $1.94.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 517 members out of 829 rating the stock outperform, and 312 members rating it underperform. Among 257 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 156 give Gap a green thumbs-up, and 101 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Gap is hold, with an average price target of $26.81.

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