Warner Chilcott (Nasdaq: WCRX) is expected to report Q2 earnings on Aug. 3. 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 Warner Chilcott's revenues will shrink -9.8% and EPS will drop -16.0%.

The average estimate for revenue is $604.9 million. On the bottom line, the average EPS estimate is $0.79.

Revenue details
Last quarter, Warner Chilcott reported revenue of $685.0 million. GAAP reported sales were 9.5% lower than the prior-year quarter's $757.0 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, non-GAAP EPS came in at $1.16. GAAP EPS were $0.45 for Q1 compared to -$0.10 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 89.5%, 200 basis points better than the prior-year quarter. Operating margin was 38.0%, 760 basis points better than the prior-year quarter. Net margin was 16.5%, 1,970 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.48 billion. The average EPS estimate is $3.42.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 137 members out of 166 rating the stock outperform, and 29 members rating it underperform. Among 47 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 39 give Warner Chilcott a green thumbs-up, and eight give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Warner Chilcott is outperform, with an average price target of $23.39.

The drug and healthcare investing landscape is littered with also-rans and a few major winners. Is Warner Chilcott the right stock for you? Read "Discover the Next Rule-Breaking Multibagger" to learn about a company David Gardner believes will be a phenomenal success over the next few years. Get instant access to this free report.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is the 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 don't 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.