Smith & Nephew (NYSE: SNN) is expected to report Q2 earnings on Aug. 2. Here's what Wall Street wants to see.

The 10-second takeaway
Comparing the upcoming quarter with the prior-year quarter, average analyst estimates predict Smith & Nephew's revenues will contract -3.4% and EPS will grow 6.9%.

The average estimate for revenue is $1.04 billion. On the bottom line, the average EPS estimate is $0.93.

Revenue details
Last quarter, Smith & Nephew recorded revenue of $1.08 billion. GAAP reported sales were 2.3% higher than the prior-year quarter's $1.06 billion.

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 $0.94. GAAP EPS of $0.18 for Q1 were 5.9% higher than the prior-year quarter's $0.17 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 74.9%, 110 basis points better than the prior-year quarter. Operating margin was 21.9%, about the same as the prior-year quarter. Net margin was 14.9%, 10 basis points better than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $4.23 billion. The average EPS estimate is $3.80.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 119 members out of 129 rating the stock outperform, and 10 members rating it underperform. Among 33 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Smith & Nephew a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Smith & Nephew is hold, with an average price target of $51.60.

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