HMS Holdings (Nasdaq: HMSY) is expected to report Q2 earnings on July 26. 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 HMS Holdings's revenues will increase 3.0% and EPS will shrink -8.7%.

The average estimate for revenue is $123.7 million. On the bottom line, the average EPS estimate is $0.21.

Revenue details
 Last quarter, HMS Holdings recorded revenue of $116.6 million. GAAP reported sales were 8.7% higher than the prior-year quarter's $107.3 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 $0.15. GAAP EPS of $0.08 were the same as 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 33.4%, 300 basis points worse than the prior-year quarter. Operating margin was 13.1%, 180 basis points worse than the prior-year quarter. Net margin was 6.0%, 60 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $504.9 million. The average EPS estimate is $0.88.

Investor sentiment
 The stock has a three-star rating (out of five) at Motley Fool CAPS, with 281 members out of 296 rating the stock outperform, and 15 members rating it underperform. Among 63 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 59 give HMS Holdings a green thumbs-up, and four give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on HMS Holdings is outperform, with an average price target of $31.08.

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