Cavium (Nasdaq: CAVM) is expected to report Q3 earnings on Oct. 29. 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 Cavium's revenues will contract -10.5% and EPS will contract -59.3%.

The average estimate for revenue is $60.6 million. On the bottom line, the average EPS estimate is $0.11.

Revenue details
Last quarter, Cavium logged revenue of $55.3 million. GAAP reported sales were 23% lower than the prior-year quarter's $71.6 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 $0.07. GAAP EPS were -$0.24 for Q2 compared to $0.04 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 55.2%, 470 basis points worse than the prior-year quarter. Operating margin was -25.5%, 2,790 basis points worse than the prior-year quarter. Net margin was -21.4%, 2,410 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $234.1 million. The average EPS estimate is $0.35.

Investor sentiment
The stock has a one-star rating (out of five) at Motley Fool CAPS, with 75 members out of 107 rating the stock outperform, and 32 members rating it underperform. Among 43 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 33 give Cavium a green thumbs-up, and 10 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Cavium is outperform, with an average price target of $29.34.

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