In its upcoming report, Spotify (SPOT) is predicted by Wall Street analysts to post quarterly earnings of $2.95 per share, reflecting an increase of 56.9% compared to the same period last year. Revenues are forecasted to be $5.16 billion, representing a year-over-year increase of 14%.
The consensus EPS estimate for the quarter has been revised 7.5% lower over the last 30 days to the current level. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain Spotify metrics that are commonly tracked and forecasted by Wall Street analysts.
The combined assessment of analysts suggests that 'Total Monthly Active Users (MAUs)' will likely reach 745.41 million. Compared to the present estimate, the company reported 675.00 million in the same quarter last year.
Analysts' assessment points toward 'Premium Subscribers' reaching 289.27 million. The estimate is in contrast to the year-ago figure of 263.00 million.
Analysts forecast 'Ad-Supported MAUs' to reach 470.00 million. The estimate is in contrast to the year-ago figure of 425.00 million.
View all Key Company Metrics for Spotify here>>>
Spotify shares have witnessed a change of -22.7% in the past month, in contrast to the Zacks S&P 500 composite's +0.5% move. With a Zacks Rank #3 (Hold), SPOT is expected closely follow 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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