Extreme Networks (Nasdaq: EXTR) is expected to report Q2 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 Extreme Networks's revenues will contract -8.3% and EPS will wane -50.0%.

The average estimate for revenue is $75.9 million. On the bottom line, the average EPS estimate is $0.03.

Revenue details
Last quarter, Extreme Networks reported revenue of $76.1 million. GAAP reported sales were 3.5% lower than the prior-year quarter's $78.9 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 $0.04. GAAP EPS of $0.14 for Q1 were much higher than the prior-year quarter's $0.02 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 52.5%, 270 basis points worse than the prior-year quarter. Operating margin was 2.7%, 80 basis points worse than the prior-year quarter. Net margin was 17.0%, 1,500 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $299.7 million. The average EPS estimate is $0.16.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 112 members out of 119 rating the stock outperform, and seven members rating it underperform. Among 23 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 22 give Extreme Networks 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 Extreme Networks is outperform, with an average price target of $5.00.

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