Merge Healthcare (Nasdaq: MRGE) is expected to report Q2 earnings around July 30. 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 4.4% and EPS will grow 150.0%.

The average estimate for revenue is $65.7 million. On the bottom line, the average EPS estimate is $0.05.

Revenue details
 Last quarter, Merge Healthcare reported revenue of $63.6 million. GAAP reported sales were 4.4% higher than the prior-year quarter's $61.0 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 -$0.01. GAAP EPS were -$0.07 for Q1 against -$0.02 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 58.5%, 360 basis points worse than the prior-year quarter. Operating margin was 6.7%, 320 basis points worse than the prior-year quarter. Net margin was -10.2%, 720 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $265.0 million. The average EPS estimate is $0.18.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 112 members out of 133 rating the stock outperform, and 21 members rating it underperform. Among 40 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 34 give Merge Healthcare 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 Merge Healthcare is outperform, with an average price target of $3.87.

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