Pegasystems (Nasdaq: PEGA) is expected to report Q1 earnings on May 8. 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 Pegasystems's revenues will increase 6.6% and EPS will contract -8.7%.

The average estimate for revenue is $118.5 million. On the bottom line, the average EPS estimate is $0.21.

Revenue details
 Last quarter, Pegasystems reported revenue of $143.8 million. GAAP reported sales were 25% higher than the prior-year quarter's $115.3 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 $0.65. GAAP EPS were $0.52 for Q4 versus -$0.05 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 73.4%, much better than the prior-year quarter. Operating margin was 19.3%, much better than the prior-year quarter. Net margin was 14.2%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $509.0 million. The average EPS estimate is $1.18.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 155 members out of 175 rating the stock outperform, and 20 members rating it underperform. Among 44 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 38 give Pegasystems a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Pegasystems is outperform, with an average price target of $25.33.

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