Tellabs (Nasdaq: TLAB) is expected to report Q2 earnings around 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 Tellabs's revenues will compress -27.0% and EPS will shrink to a loss.

The average estimate for revenue is $210.3 million. On the bottom line, the average EPS estimate is -$0.02.

Revenue details
 Last quarter, Tellabs booked revenue of $209.4 million. GAAP reported sales were 19% lower than the prior-year quarter's $257.9 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 -$0.04. GAAP EPS were -$0.16 for Q1 against -$0.38 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 34.5%, 260 basis points worse than the prior-year quarter. Operating margin was -12.5%, 50 basis points worse than the prior-year quarter. Net margin was -26.7%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $861.7 million. The average EPS estimate is -$0.03.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 384 members out of 431 rating the stock outperform, and 47 members rating it underperform. Among 97 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 90 give Tellabs a green thumbs-up, and seven give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tellabs is hold, with an average price target of $2.47.

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