Legg Mason (NYSE: LM) is expected to report Q1 earnings on July 27. 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 Legg Mason's revenues will wither -9.7% and EPS will compress -17.5%.

The average estimate for revenue is $647.7 million. On the bottom line, the average EPS estimate is $0.33.

Revenue details
Last quarter, Legg Mason tallied revenue of $648.6 million. GAAP reported sales were 9.1% lower than the prior-year quarter's $713.4 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, EPS came in at $0.54. GAAP EPS of $0.54 for Q4 were 20% higher than the prior-year quarter's $0.45 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 29.4%, 420 basis points worse than the prior-year quarter. Operating margin was 14.5%, 70 basis points worse than the prior-year quarter. Net margin was 11.7%, 200 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.61 billion. The average EPS estimate is $1.87.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 819 members out of 893 rating the stock outperform, and 74 members rating it underperform. Among 305 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 280 give Legg Mason a green thumbs-up, and 25 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Legg Mason is hold, with an average price target of $29.85.

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.