TransAlta (NYSE: TAC) 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 TransAlta's revenue will grow 2.6% and EPS will drop 43.3%.

The average estimate for revenue is $547.8 million. On the bottom line, the average EPS estimate is $0.17.

Revenue details
Last quarter, TransAlta logged revenue of $657.3 million. GAAP reported sales were 22% lower than the prior-year quarter's $842.2 million.

My

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 $0.20. GAAP EPS of $0.40 for Q1 were 58% lower than the prior-year quarter's $0.95 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 47.0%, 1,170 basis points worse than the prior-year quarter. Operating margin was 26.2%, 1,770 basis points worse than the prior-year quarter. Net margin was 14.6%, 1,080 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $2.42 billion. The average EPS estimate is $0.87.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 79 members out of 83 rating the stock outperform, and four members rating it underperform. Among 21 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 20 give TransAlta a green thumbs-up, and one gives it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on TransAlta is hold, with an average price target of $22.44.

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. The Motley Fool has no positions in the stocks mentioned above. 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.