IPG Photonics (Nasdaq: IPGP) is expected to report Q2 earnings on July 31. 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 IPG Photonics's revenues will expand 10.9% and EPS will improve 4.8%.

The average estimate for revenue is $135.2 million. On the bottom line, the average EPS estimate is $0.66.

Revenue details
 Last quarter, IPG Photonics booked revenue of $123.2 million. GAAP reported sales were 23% higher than the prior-year quarter's $100.0 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 $0.61. GAAP EPS of $0.61 for Q1 were 30% higher than the prior-year quarter's $0.47 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 55.8%, 210 basis points better than the prior-year quarter. Operating margin was 37.7%, 290 basis points better than the prior-year quarter. Net margin was 24.3%, 120 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $557.3 million. The average EPS estimate is $2.77.

Investor sentiment
 The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,433 members out of 1,464 rating the stock outperform, and 31 members rating it underperform. Among 413 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 404 give IPG Photonics a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on IPG Photonics is outperform, with an average price target of $64.80.

Over the decades, small-cap stocks, like IPG Photonics have provided market-beating returns, provided they're value priced and have solid businesses. Read about a pair of companies with a lock on their markets in "Too Small to Fail: Two Small Caps the Government Won't Let Go Broke." Click here for instant access to this free report.