Spotify (SPOT) Earnings Expected to Grow: Should You Buy?

Core Viewpoint - Wall Street anticipates a year-over-year increase in Spotify's earnings driven by higher revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - Spotify is expected to report quarterly earnings of $1.91 per share, reflecting a significant year-over-year increase of +589.7$4.35 billion, indicating a 10% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.58% over the last 30 days, indicating a reassessment by analysts [4]. - A negative Earnings ESP of -14.49% suggests a bearish outlook from analysts regarding Spotify's earnings prospects [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive or negative reading can predict earnings deviations, but its predictive power is stronger for positive readings [7][8]. - Spotify's current Zacks Rank is 3, which complicates the prediction of an earnings beat [11]. Historical Performance - In the last reported quarter, Spotify was expected to earn $1.75 per share but only achieved$1.59, resulting in a surprise of -9.14% [12]. - Over the past four quarters, Spotify has beaten consensus EPS estimates twice [13]. Conclusion - Despite the potential for an earnings beat, various factors can influence stock movement, making it essential to consider other elements beyond earnings results [14][16].