Wall Street analysts expect Spotify (SPOT) to post quarterly earnings of $2.31 per share in its upcoming report, which indicates a year-over-year increase of 120%. Revenues are expected to be $4.47 billion, up 13.3% from the year-ago quarter.
The current level reflects an upward revision of 2.7% 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.
Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions 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.
With that in mind, let's delve into the average projections of some Spotify metrics that are commonly tracked and projected by analysts on Wall Street.
It is projected by analysts that the 'Total Monthly Active Users (MAUs)' will reach 678.34 million. Compared to the current estimate, the company reported 615 million in the same quarter of the previous year.
Analysts expect 'Ad-Supported MAUs' to come in at 426.42 million. The estimate compares to the year-ago value of 388 million.
The combined assessment of analysts suggests that 'Premium Subscribers' will likely reach 265.41 million. Compared to the current estimate, the company reported 239 million in the same quarter of the previous year.
View all Key Company Metrics for Spotify here>>>
Over the past month, shares of Spotify have returned +2.8% versus the Zacks S&P 500 composite's -5.1% change. Currently, SPOT carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Spotify Technology (SPOT): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research
