Rosetta Stone (NYSE: RST) is expected to report Q1 earnings on May 8. 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 Rosetta Stone's revenues will compress -6.3% and EPS will remain in the red.

The average estimate for revenue is $65.1 million. On the bottom line, the average EPS estimate is -$0.08.

Revenue details
 Last quarter, Rosetta Stone notched revenue of $78.7 million. GAAP reported sales were 2.3% lower than the prior-year quarter's $80.5 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 were $0.19 for Q4 versus -$0.24 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 83.6%, 200 basis points better than the prior-year quarter. Operating margin was 6.4%, much better than the prior-year quarter. Net margin was 5.1%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $285.5 million. The average EPS estimate is $0.03.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 675 members out of 764 rating the stock outperform, and 89 members rating it underperform. Among 170 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 153 give Rosetta Stone a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rosetta Stone is hold, with an average price target of $13.67.

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