ReachLocal (Nasdaq: RLOC) is expected to report Q2 earnings on Aug. 6. 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 ReachLocal's revenues will expand 11.3% and EPS will shrink to a loss.

The average estimate for revenue is $124.9 million. On the bottom line, the average EPS estimate is -$0.03.

Revenue details
 Last quarter, ReachLocal logged revenue of $121.8 million. GAAP reported sales were 17% higher than the prior-year quarter's $104.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

EPS details
 Last quarter, EPS came in at -$0.02. GAAP EPS were -$0.02 for Q1 compared to -$0.03 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.

Recent performance
 For the preceding quarter, gross margin was 49.5%, 10 basis points worse than the prior-year quarter. Operating margin was 0.1%, 110 basis points better than the prior-year quarter. Net margin was -0.5%, 50 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $529.1 million. The average EPS estimate is $0.01.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 67 members out of 75 rating the stock outperform, and eight members rating it underperform. Among 24 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 21 give ReachLocal a green thumbs-up, and three give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on ReachLocal is outperform, with an average price target of $17.00.

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