Back to top

Image: Bigstock

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

Read MoreHide Full Article

Spotify Technology S.A. (SPOT - Free Report) will release third-quarter 2022 results on Oct 25, after market close.

SPOT’s surprise history has been impressive. Its earnings delivered an earnings surprise of 28.3% in the last four quarters (two beats and two misses), on average.

Spotify Technology Price and EPS Surprise

Spotify Technology Price and EPS Surprise

Spotify Technology price-eps-surprise | Spotify Technology Quote

Q3 Expectations

The Zacks Consensus Estimate for the to-be-reported quarter’s revenues is pegged at $3.06 billion, indicating growth of 3.8% 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 17.6% and 12.8%, respectively, from the corresponding year-ago September-quarter’s readings.

SPOT is expected to have incurred a loss of 88 cents per share in the to-be-reported quarter. It had incurred a A loss of 48 cents per share was reported in the third quarter of 2021. The loss might have been due to increase inhigher operating expenses.

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. You can see the complete list of today’s Zacks #1 Rank stocks here.

Spotify has an Earnings ESP of -5.95% and a Zacks Rank #3.

Stocks to Consider

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:

Gartner, Inc. (IT - Free Report) has an Earnings ESP of +1.89% and a Zacks Rank #3.

IT has an expected revenue growth rate of 13.7% and 10.3% for the current and next year, respectively. Gartner has a trailing four-quarter earnings surprise of 25.3%, on average.

Trane Technologies plc (TT - Free Report) has an Earnings ESP of +2.09% and a Zacks Rank of 3.

Trane Technologies has an expected earnings growth rate of 16.3% for the current year. TT has a trailing four-quarter earnings surprise of 3.9%, on average.

Riot Blockchain (RIOT - Free Report) has an Earnings ESP of +125.49% and a is Zacks #3 Ranked #3.

Riot has an expected revenue growth rate of 41.2% for the current year and 69.1% for next year.  

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
 

Published in