Wall Street analysts expect Spotify (SPOT) to post quarterly earnings of $3.12 per share in its upcoming report, which indicates a year-over-year decline of 18.5%. Revenues are expected to be $5.73 billion, up 14.8% from the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. 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 usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding.
That said, let's delve into the average estimates of some Spotify metrics that Wall Street analysts commonly model and monitor.
The collective assessment of analysts points to an estimated 'Total Monthly Active Users (MAUs)' of 790.07 million. Compared to the current estimate, the company reported 713.00 million in the same quarter of the previous year.
Analysts predict that the 'Premium Subscribers' will reach 305.06 million. Compared to the current estimate, the company reported 281.00 million in the same quarter of the previous year.
Analysts forecast 'Ad-Supported MAUs' to reach 499.83 million. Compared to the current estimate, the company reported 446.00 million in the same quarter of the previous year.
View all Key Company Metrics for Spotify here>>>Spotify shares have witnessed a change of +4.1% in the past month, in contrast to the Zacks S&P 500 composite's +1.5% 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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