Applied Materials (Nasdaq: AMAT) is expected to report Q3 earnings on Aug. 15. 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 Applied Materials' revenues will drop 16.7% and EPS will shrink 37.1%.

The average estimate for revenue is $2.32 billion. On the bottom line, the average EPS estimate is $0.22.

Revenue details
Last quarter, Applied Materials logged revenue of $2.54 billion. GAAP reported sales were 11% lower than the prior-year quarter's $2.86 billion.

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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 $0.27. GAAP EPS of $0.22 for Q2 were 41% lower than the prior-year quarter's $0.37 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 39.8%, 170 basis points worse than the prior-year quarter. Operating margin was 16.1%, 740 basis points worse than the prior-year quarter. Net margin was 11.4%, 570 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $9 billion. The average EPS estimate is $0.79.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 2,033 members rating the stock outperform and 106 members rating it underperform. Among 427 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 408 give Applied Materials a green thumbs-up, and 19 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Applied Materials is outperform, with an average price target of $14.55.

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