Applied Micro Circuits (Nasdaq: AMCC) is expected to report Q2 earnings on Oct. 25. 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 Micro Circuits's revenues will contract -30.2% and EPS will shrink to a loss.

The average estimate for revenue is $45.3 million. On the bottom line, the average EPS estimate is -$0.16.

Revenue details
 Last quarter, Applied Micro Circuits reported revenue of $41.3 million. GAAP reported sales were 32% lower than the prior-year quarter's $60.8 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 -$0.18. GAAP EPS were -$0.37 for Q1 compared to -$0.11 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 55.6%, 110 basis points worse than the prior-year quarter. Operating margin was -51.7%, 3,940 basis points worse than the prior-year quarter. Net margin was -56.6%, 4,530 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $193.8 million. The average EPS estimate is -$0.53.

Investor sentiment
 The stock has a one-star rating (out of five) at Motley Fool CAPS, with 121 members out of 156 rating the stock outperform, and 35 members rating it underperform. Among 25 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 16 give Applied Micro Circuits a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Applied Micro Circuits is outperform, with an average price target of $8.61.

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