Atmel (Nasdaq: ATML) is expected to report Q2 earnings around July 31. 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 Atmel's revenues will compress -5.8% and EPS will contract -25.0%.

The average estimate for revenue is $346.9 million. On the bottom line, the average EPS estimate is $0.06.

Revenue details
Last quarter, Atmel reported revenue of $329.1 million. GAAP reported sales were 8.0% lower than the prior-year quarter's $357.8 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 were -$0.11 for Q1 against $0.05 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 39.9%, 270 basis points worse than the prior-year quarter. Operating margin was 0.0%, 750 basis points worse than the prior-year quarter. Net margin was -14.5%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.43 billion. The average EPS estimate is $0.32.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 374 members out of 411 rating the stock outperform, and 37 members rating it underperform. Among 91 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 84 give Atmel 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 Atmel is outperform, with an average price target of $7.92.

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