Spotify (SPOT) to Post Q3 Earnings: What's in the Cards?

Zacks Equity Research
·2 min read

Spotify Technology S.A. SPOT will release third-quarter 2021 results on Oct 27, before the bell.

The company’s earnings surprise history has been impressive. It delivered an earnings surprise of 20.7% in the last four quarters, on average.

Q2 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $2.9 billion, indicating year-over-year growth of 25.5%. Growth of subscribers and monthly active users (MAUs) is likely to have benefited the top line.

Gross margin is expected to be lower due to the impacts of seasonality. The metric is comparatively low in the first and third quarters as costs of promotional campaigns are higher compared with the second and fourth quarters. The company is expected to have incurred a loss of 25 cents per share in the to-be-reported quarter. It had incurred a loss of 68 cents in the third quarter of 2020.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Spotify this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Spotify has an Earnings ESP of 0.00% and a Zacks Rank #3.

Spotify Technology Price and EPS Surprise

Spotify Technology price-eps-surprise | Spotify Technology Quote

Stocks That Warrant a Look

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this season.

Avis Budget CAR has an Earnings ESP of +18.16% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

WEX WEX has an Earnings ESP of +2.83% and a Zacks Rank #3.

S&P Global SPGI has an Earnings ESP of +0.63% and a Zacks Rank #3.


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Spotify Technology (SPOT) : Free Stock Analysis Report

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