Applied Micro Circuits (Nasdaq: AMCC) is expected to report Q3 earnings on Jan. 30. 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 Applied Micro Circuits's revenues will contract -9.5% and EPS will remain in the red.

The average estimate for revenue is $51.0 million. On the bottom line, the average EPS estimate is -$0.12.

Revenue details
 Last quarter, Applied Micro Circuits reported revenue of $46.3 million. GAAP reported sales were 29% lower than the prior-year quarter's $64.9 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 -$0.16. GAAP EPS were -$0.33 for Q2 versus -$0.02 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 55.6%, 170 basis points worse than the prior-year quarter. Operating margin was -44.1%, 3,730 basis points worse than the prior-year quarter. Net margin was -46.5%, 4,470 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $193.8 million. The average EPS estimate is -$0.52.

Investor sentiment
 The stock has a one-star rating (out of five) at Motley Fool CAPS, with 122 members out of 159 rating the stock outperform, and 37 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 23 give Applied Micro Circuits a green thumbs-up, and 12 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Applied Micro Circuits is outperform, with an average price target of $8.61.

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