Watson Pharmaceuticals (NYSE: WPI) is expected to report Q2 earnings on July 26. 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 Watson Pharmaceuticals' revenues will expand 25.0% and EPS will expand 36.6%.

The average estimate for revenue is $1.35 billion. On the bottom line, the average EPS estimate is $1.38.

Revenue details
Last quarter, Watson Pharmaceuticals booked revenue of $1.52 billion. GAAP reported sales were 74% higher than the prior-year quarter's $876.5 million.

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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 $1.64. GAAP EPS of $0.43 for Q1 were 19% higher than the prior-year quarter's $0.36 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 40.7%, 730 basis points worse than the prior-year quarter. Operating margin was 8.0%, 630 basis points worse than the prior-year quarter. Net margin was 3.6%, 160 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $5.53 billion. The average EPS estimate is $5.77.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 192 members out of 216 rating the stock outperform, and 24 members rating it underperform. Among 74 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 68 give Watson Pharmaceuticals 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 Watson Pharmaceuticals is outperform, with an average price target of $69.23.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.