Zix (Nasdaq: ZIXI) is expected to report Q2 earnings on July 23. 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 Zix's revenues will expand 13.0% and EPS will wane -20.0%.

The average estimate for revenue is $11.7 million. On the bottom line, the average EPS estimate is $0.04.

Revenue details
Last quarter, Zix reported revenue of $11.8 million. GAAP reported sales were 14% higher than the prior-year quarter's $10.3 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, non-GAAP EPS came in at $0.03. GAAP EPS of $0.01 for Q1 were 75% lower than the prior-year quarter's $0.04 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 83.5%, 150 basis points better than the prior-year quarter. Operating margin was 5.1%, much worse than the prior-year quarter. Net margin was 4.8%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $49.0 million. The average EPS estimate is $0.19.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 549 members out of 787 rating the stock outperform, and 238 members rating it underperform. Among 67 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 66 give Zix a green thumbs-up, and one give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Zix is buy, with an average price target of $5.08.

Internet software and services are being consumed in radically different ways, on new and increasingly mobile devices. Is Zix on the right side of the revolution? Check out the changing landscape and meet the company that Motley Fool analysts expect to lead "The Next Trillion-dollar Revolution." Click here for instant access to this free report.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.