KLA-Tencor (Nasdaq: KLAC) is expected to report Q2 earnings on Jan. 24. 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 KLA-Tencor's revenues will decrease -1.2% and EPS will wane -20.8%.

The average estimate for revenue is $634.5 million. On the bottom line, the average EPS estimate is $0.57.

Revenue details
 Last quarter, KLA-Tencor recorded revenue of $720.7 million. GAAP reported sales were 9.5% lower than the prior-year quarter's $796.5 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 $0.84. GAAP EPS of $0.80 for Q1 were 29% lower than the prior-year quarter's $1.13 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 56.0%, 130 basis points worse than the prior-year quarter. Operating margin was 26.3%, 560 basis points worse than the prior-year quarter. Net margin was 18.8%, 530 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.82 billion. The average EPS estimate is $3.14.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 254 members out of 286 rating the stock outperform, and 32 members rating it underperform. Among 90 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 82 give KLA-Tencor 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 KLA-Tencor is outperform, with an average price target of $56.59.

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