Walter Energy (NYSE: WLT) is expected to report Q2 earnings on May 1. 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 Walter Energy's revenues will shrink -19.6% and EPS will shrink to a loss.

The average estimate for revenue is $544.6 million. On the bottom line, the average EPS estimate is -$0.32.

Revenue details
 Last quarter, Walter Energy logged revenue of $478.8 million. GAAP reported sales were 33% lower than the prior-year quarter's $707.4 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, EPS came in at -$1.13. GAAP EPS were -$1.13 for Q1 compared to $1.28 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 9.0%, much worse than the prior-year quarter. Operating margin was -29.3%, much worse than the prior-year quarter. Net margin was -15.0%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.24 billion. The average EPS estimate is -$1.11.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,492 members out of 1,586 rating the stock outperform, and 94 members rating it underperform. Among 315 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 293 give Walter Energy a green thumbs-up, and 22 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Walter Energy is hold, with an average price target of $39.15.

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