Travelzoo (Nasdaq: TZOO) is expected to report Q2 earnings on July 18. 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 Travelzoo's revenues will increase 4.7% and EPS will decrease -40.0%.

The average estimate for revenue is $41.2 million. On the bottom line, the average EPS estimate is $0.27.

Revenue details
Last quarter, Travelzoo reported revenue of $42.2 million. GAAP reported sales were 7.2% higher than the prior-year quarter's $39.3 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 $0.36. GAAP EPS of $0.36 for Q1 were 57% higher than the prior-year quarter's $0.23 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 90.6%, 90 basis points better than the prior-year quarter. Operating margin was 19.1%, 520 basis points worse than the prior-year quarter. Net margin was 13.3%, 380 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $160.9 million. The average EPS estimate is $1.17.

Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 401 members out of 583 rating the stock outperform, and 182 members rating it underperform. Among 147 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 88 give Travelzoo a green thumbs-up, and 59 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Travelzoo is hold, with an average price target of $23.00.

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