The upcoming report from Spotify (SPOT) is expected to reveal quarterly earnings of $1.87 per share, indicating an increase of 17.6% compared to the year-ago period. Analysts forecast revenues of $4.92 billion, representing an increase of 12.3% year over year.
The current level reflects a downward revision of 5.3% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.
Bearing this in mind, let's now explore the average estimates of specific Spotify metrics that are commonly monitored and projected by Wall Street analysts.
According to the collective judgment of analysts, 'Total Monthly Active Users (MAUs)' should come in at 710.30 million. The estimate is in contrast to the year-ago figure of 640.00 million.
Analysts predict that the 'Ad-Supported MAUs' will reach 442.33 million. Compared to the present estimate, the company reported 402.00 million in the same quarter last year.
Analysts forecast 'Premium Subscribers' to reach 281.16 million. The estimate compares to the year-ago value of 252.00 million.
View all Key Company Metrics for Spotify here>>>
Spotify shares have witnessed a change of -5% in the past month, in contrast to the Zacks S&P 500 composite's +3.6% move. With a Zacks Rank #4 (Sell), SPOT is expected underperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Spotify Technology (SPOT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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