2 Standout Stocks to Buy After Beating Earnings Expectations

Core Insights - Spotify's monthly active users (MAU) are projected to increase by 13 million in Q3, reaching 639 million, while subscribers are expected to rise by 5 million to 251 million [2] - Both HCA Healthcare and Spotify exceeded Q2 earnings expectations, indicating a promising investment opportunity due to their increased profitability [4] - Spotify's Q2 sales reached $4.09 billion, an 18% increase from $3.45 billion in Q2 2023, despite slightly missing estimates [5] - HCA's Q2 EPS increased by 28% to $5.50, surpassing the Zacks EPS Consensus of $4.97 by 10% [10] - Spotify's Q2 EPS was $1.43, a significant improvement from an adjusted loss of -$1.69 in the prior year, exceeding expectations by 32% [12] - Spotify achieved a gross margin of 29.2% and a record free cash flow of approximately $531.74 million [13][14] - Both companies are expected to see upward revisions in earnings estimates, with anticipated double-digit EPS growth for fiscal 2024 and FY25 [16] Company Performance - Spotify's stock has surged over 70% this year, while HCA's stock has increased by 26%, both outperforming the S&P 500's 17% gain [15] - HCA operates various healthcare facilities and has seen strong demand for its services across 20 states and the UK [9]