KAR Auction Services (NYSE: KAR) 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 KAR Auction Services's revenues will expand 6.3% and EPS will expand 15.4%.

The average estimate for revenue is $518.7 million. On the bottom line, the average EPS estimate is $0.30.

Revenue details
Last quarter, KAR Auction Services booked revenue of $557.6 million. GAAP reported sales were 10% higher than the prior-year quarter's $506.9 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, non-GAAP EPS came in at $0.31. GAAP EPS of $0.21 for Q1 were 11% higher than the prior-year quarter's $0.19 per share.

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 40.6%, 630 basis points worse than the prior-year quarter. Operating margin was 14.0%, 80 basis points worse than the prior-year quarter. Net margin was 5.2%, 10 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.10 billion. The average EPS estimate is $1.19.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 21 members out of 26 rating the stock outperform, and five members rating it underperform. Among 13 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 give KAR Auction Services a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on KAR Auction Services is outperform, with an average price target of $23.81.

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