Merge Healthcare (Nasdaq: MRGE) is expected to report Q1 earnings on May 1. 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 Merge Healthcare's revenues will grow 4.5% and EPS will increase 33.3%.

The average estimate for revenue is $63.7 million. On the bottom line, the average EPS estimate is $0.04.

Revenue details
Last quarter, Merge Healthcare chalked up revenue of $64.6 million. GAAP reported sales were 0.9% higher than the prior-year quarter's $64.1 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 -$0.13. GAAP EPS were -$0.19 for Q4 compared to -$0.01 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 57.3%, 900 basis points worse than the prior-year quarter. Operating margin was -9.6%, much worse than the prior-year quarter. Net margin was -26.7%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $265.4 million. The average EPS estimate is $0.17.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 111 members out of 132 rating the stock outperform, and 21 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 32 give Merge Healthcare a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Merge Healthcare is outperform, with an average price target of $3.88.

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