Rosetta Stone (NYS: RST) is expected to report Q3 earnings on Nov. 7. 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 Rosetta Stone's revenues will wane -5.0% and EPS will remain in the red.

The average estimate for revenue is $61.0 million. On the bottom line, the average EPS estimate is -$0.05.


Revenue details
Last quarter, Rosetta Stone booked revenue of $60.8 million. GAAP reported sales were 8.9% lower than the prior-year quarter's $66.7 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 -$0.22 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 81.4%, 130 basis points worse than the prior-year quarter. Operating margin was -8.3%, 10 basis points worse than the prior-year quarter. Net margin was -7.5%, 70 basis points worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $270.5 million. The average EPS estimate is -$0.18.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 678 members out of 767 rating the stock outperform, and 89 members rating it underperform. Among 149 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 131 give Rosetta Stone a green thumbs-up, and 18 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Rosetta Stone is hold, with an average price target of $12.33.

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The article Coming Soon: Rosetta Stone Earnings originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Rosetta Stone. Motley Fool newsletter services recommend Rosetta Stone. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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