Energy Recovery (Nasdaq: ERII) is expected to report Q2 earnings on 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 Energy Recovery's revenues will wane -35.2% and EPS will shrink to a loss.

The average estimate for revenue is $8.0 million. On the bottom line, the average EPS estimate is -$0.06.

Revenue details
 Last quarter, Energy Recovery tallied revenue of $6.4 million. GAAP reported sales were 34% higher than the prior-year quarter's $4.8 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, EPS came in at -$0.09. GAAP EPS of -$0.09 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 47.3%, much better than the prior-year quarter. Operating margin was -70.2%, much better than the prior-year quarter. Net margin was -70.8%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $44.0 million. The average EPS estimate is -$0.14.

Investor sentiment

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Energy Recovery is hold, with an average price target of $3.87.

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