Digital Generation (Nasdaq: DGIT) is expected to report Q2 earnings on Aug. 9. 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 Digital Generation's revenues will grow 48.4% and EPS will wane -11.4%.

The average estimate for revenue is $100.7 million. On the bottom line, the average EPS estimate is $0.39.

Revenue details
Last quarter, Digital Generation recorded revenue of $92.8 million. GAAP reported sales were 46% higher than the prior-year quarter's $63.5 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 $0.31. GAAP EPS of $0.04 for Q1 were 91% lower than the prior-year quarter's $0.45 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 64.5%, 160 basis points worse than the prior-year quarter. Operating margin was 12.8%, 2,090 basis points worse than the prior-year quarter. Net margin was 1.1%, 1,890 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $419.9 million. The average EPS estimate is $1.79.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 249 members out of 263 rating the stock outperform, and 14 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 41 give Digital Generation a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Digital Generation is outperform, with an average price target of $17.57.

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