Oclaro (Nasdaq: OCLR) is expected to report Q4 earnings around July 28. 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 Oclaro's revenues will decrease -3.5% and EPS will remain in the red.

The average estimate for revenue is $105.4 million. On the bottom line, the average EPS estimate is -$0.16.

Revenue details
 Last quarter, Oclaro chalked up revenue of $88.7 million. GAAP reported sales were 23% lower than the prior-year quarter's $115.7 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 -$0.31. GAAP EPS were -$0.34 for Q3 against -$0.20 per share for the prior-year quarter.

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 15.4%, 920 basis points worse than the prior-year quarter. Operating margin was -19.2%, 1,430 basis points worse than the prior-year quarter. Net margin was -19.3%, 1,080 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $386.4 million. The average EPS estimate is -$1.05.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 125 members out of 156 rating the stock outperform, and 31 members rating it underperform. Among 32 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 27 give Oclaro a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Oclaro is hold, with an average price target of $5.83.

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