Xyratex (Nasdaq: XRTX) is expected to report Q2 earnings on July 5. 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 Xyratex's revenues will wane -3.4% and EPS will wane -583.3%.

The average estimate for revenue is $327.0 million. On the bottom line, the average EPS estimate is $0.29.

Revenue details
Last quarter, Xyratex reported revenue of $295.7 million. GAAP reported sales were 18% lower than the prior-year quarter's $360.5 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 $0.40. GAAP EPS of $0.38 for Q1 were 153% higher than the prior-year quarter's $0.15 per share.

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 17.9%, 420 basis points better than the prior-year quarter. Operating margin was 3.6%, 280 basis points better than the prior-year quarter. Net margin was 3.7%, 240 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $1.34 billion. The average EPS estimate is $1.65.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 254 members out of 277 rating the stock outperform, and 23 members rating it underperform. Among 68 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 60 give Xyratex a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Xyratex is hold, with an average price target of $16.20.

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