KLA-Tencor (Nasdaq: KLAC) is expected to report Q3 earnings on April 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 KLA-Tencor's revenues will decrease -13.5% and EPS will wither -31.5%.

The average estimate for revenue is $726.8 million. On the bottom line, the average EPS estimate is $0.87.

Revenue details
Last quarter, KLA-Tencor notched revenue of $673.0 million. GAAP reported sales were 4.8% higher than the prior-year quarter's $642.5 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, EPS came in at $0.63. GAAP EPS of $0.63 for Q2 were 4.5% lower than the prior-year quarter's $0.66 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 54.8%, 270 basis points worse than the prior-year quarter. Operating margin was 22.8%, 200 basis points worse than the prior-year quarter. Net margin was 15.8%, 140 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.89 billion. The average EPS estimate is $3.28.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 254 members out of 286 rating the stock outperform, and 32 members rating it underperform. Among 79 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 72 give KLA-Tencor a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KLA-Tencor is outperform, with an average price target of $53.29.

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