Applied Materials (Nasdaq: AMAT) is expected to report Q2 earnings on May 16. 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 Materials's revenues will drop -24.9% and EPS will compress -51.9%.

The average estimate for revenue is $1.91 billion. On the bottom line, the average EPS estimate is $0.13.

Revenue details
Last quarter, Applied Materials reported revenue of $1.57 billion. GAAP reported sales were 28% lower than the prior-year quarter's $2.19 billion.

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 $0.06. GAAP EPS of $0.03 for Q1 were 67% lower than the prior-year quarter's $0.09 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 37.1%, 120 basis points better than the prior-year quarter. Operating margin was 3.1%, 700 basis points worse than the prior-year quarter. Net margin was 2.2%, 310 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $7.84 billion. The average EPS estimate is $0.61.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,996 members out of 2,110 rating the stock outperform, and 114 members rating it underperform. Among 451 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 430 give Applied Materials a green thumbs-up, and 21 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Applied Materials is outperform, with an average price target of $12.88.

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