QLogic (Nasdaq: QLGC) is expected to report Q3 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 QLogic's revenues will compress -24.2% and EPS will drop -52.8%.

The average estimate for revenue is $115.8 million. On the bottom line, the average EPS estimate is $0.17.

Revenue details
Last quarter, QLogic logged revenue of $117.9 million. GAAP reported sales were 14% lower than the prior-year quarter's $136.3 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 $0.18. GAAP EPS of $0.13 for Q2 were 54% lower than the prior-year quarter's $0.28 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 66.9%, 130 basis points worse than the prior-year quarter. Operating margin was 11.0%, 1,140 basis points worse than the prior-year quarter. Net margin was 10.1%, 1,090 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $475.3 million. The average EPS estimate is $0.77.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 275 members out of 292 rating the stock outperform, and 17 members rating it underperform. Among 77 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 76 give QLogic a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on QLogic is hold, with an average price target of $12.88.

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