Education Management (Nasdaq: EDMC) is expected to report Q3 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 Education Management's revenues will decrease -10.3% and EPS will compress -39.4%.

The average estimate for revenue is $630.3 million. On the bottom line, the average EPS estimate is $0.20.

Revenue details
 Last quarter, Education Management notched revenue of $654.9 million. GAAP reported sales were 11% lower than the prior-year quarter's $737.2 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 $0.25. GAAP EPS of $0.25 for Q2 were 49% lower than the prior-year quarter's $0.49 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 45.0%, 400 basis points worse than the prior-year quarter. Operating margin was 12.8%, 490 basis points worse than the prior-year quarter. Net margin was 4.8%, 380 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $2.47 billion. The average EPS estimate is $0.42.

Investor sentiment
 The stock has a one-star rating (out of five) at Motley Fool CAPS, with 31 members out of 61 rating the stock outperform, and 30 members rating it underperform. Among 17 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), eight give Education Management a green thumbs-up, and nine give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Education Management is hold, with an average price target of $4.22.

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