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SPOT’s surprise history has been impressive. It delivered an earnings surprise of 50.8% in the last four quarters (three beats and one miss), on average.
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $2.98 billion, indicating growth of 6% from the year-ago period’s reported figure. Growth of subscribers and monthly active users (MAUs) is likely to have benefited the top line. The consensus mark for total monthly active users and premium subscribers’ metric is likely to rise 17.3% and 13.3%, respectively, from the corresponding year-ago June-quarter’s readings.
Gross margin is expected to have been lower due to the impacts of increased non-music content spend, investments in music product enhancements and modestly higher other cost of revenues. SPOT is expected to have incurred a loss of 68 cents per share in the to-be-reported quarter. It had incurred a loss of 23 cents in the second quarter of 2021.
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, as elaborated below. 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 #2.
Stocks to Consider
Here are a few stocks worth considering from the broader Zacks Business Services sector, as our model shows that these have the right combination of elements to beat on second-quarter 2022 earnings:
LUMN has a trailing four-quarter earnings surprise of 17.6%, on average.
Booz Allen Hamilton Holding Corporation (BAH - Free Report) has an Earnings ESP of +4.41% and a Zacks Rank #3.
Booz Allen has an expected earnings growth rate of 3.3% for the current year. BAH has a trailing four-quarter earnings surprise of 9.5%, on average.
Avis Budget Group, Inc. (CAR - Free Report) has an Earnings ESP of +22.33% and is Zacks #2 Ranked.
Avis Budget has an expected earnings growth rate of 74.4% for the current year. CAR delivered a trailing four-quarter earnings surprise of 102%, on average.
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Spotify (SPOT) to Post Q2 Earnings: What's in the Offing?
Spotify Technology S.A. (SPOT - Free Report) will release second-quarter 2022 results on Jul 27, before the opening bell.
SPOT’s surprise history has been impressive. It delivered an earnings surprise of 50.8% in the last four quarters (three beats and one miss), on average.
Spotify Technology Price and EPS Surprise
Spotify Technology price-eps-surprise | Spotify Technology Quote
Q2 Expectations
The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $2.98 billion, indicating growth of 6% from the year-ago period’s reported figure. Growth of subscribers and monthly active users (MAUs) is likely to have benefited the top line. The consensus mark for total monthly active users and premium subscribers’ metric is likely to rise 17.3% and 13.3%, respectively, from the corresponding year-ago June-quarter’s readings.
Gross margin is expected to have been lower due to the impacts of increased non-music content spend, investments in music product enhancements and modestly higher other cost of revenues. SPOT is expected to have incurred a loss of 68 cents per share in the to-be-reported quarter. It had incurred a loss of 23 cents in the second quarter of 2021.
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, as elaborated below. 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 #2.
Stocks to Consider
Here are a few stocks worth considering from the broader Zacks Business Services sector, as our model shows that these have the right combination of elements to beat on second-quarter 2022 earnings:
Lumen Technologies, Inc. (LUMN - Free Report) has an Earnings ESP of +0.58% and a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
LUMN has a trailing four-quarter earnings surprise of 17.6%, on average.
Booz Allen Hamilton Holding Corporation (BAH - Free Report) has an Earnings ESP of +4.41% and a Zacks Rank #3.
Booz Allen has an expected earnings growth rate of 3.3% for the current year. BAH has a trailing four-quarter earnings surprise of 9.5%, on average.
Avis Budget Group, Inc. (CAR - Free Report) has an Earnings ESP of +22.33% and is Zacks #2 Ranked.
Avis Budget has an expected earnings growth rate of 74.4% for the current year. CAR delivered a trailing four-quarter earnings surprise of 102%, on average.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.