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Spotify (SPOT) to Report Q1 Earnings: What's in the Offing?

Spotify Technology S.A. SPOT will report first-quarter 2024 results on Apr 23, before the bell.

The company’s earnings surprise history has not been impressive. Earnings lagged the Zacks Consensus Estimate in three of the four trailing quarters and surpassed once, the average negative surprise being 62.5%.

Spotify Technology Price and EPS Surprise

Spotify Technology price-eps-surprise | Spotify Technology Quote

Q1 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $3.88 billion, indicating year-over-year growth of 18.9%. The growth of subscribers, monthly active users and average revenue per user is likely to have benefited the top line.

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The consensus mark for earnings stands at 66 cents per share, indicating a significant improvement from a loss of $1.24 per share incurred in the year-ago quarter. We expect a strong margin performance from the podcast business in the quarter.

What Our Model Says

Our proven model doesn’t 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 -35.48% and a Zacks Rank #3.

Stocks That Warrant a Look

Here are a few stocks from the broader Business services sector, which, according to our model, have the right combination of elements to beat on earnings this season.

WEX WEX: The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $653.6 million, indicating year-over-year growth of 6.8%. For earnings, the consensus mark is pegged at $3.5 per share, suggesting a 4.2% rise from the year-ago quarter’s actual. It beat the consensus estimate in the past four quarters, with an average surprise of 4.3%.

WEX currently has an Earnings ESP of +1.34% and a Zacks Rank of 3. The company is scheduled to declare its first-quarter results on Apr 25. You can see the complete list of today’s Zacks #1 Rank stocks here.

Trane Technologies TT: The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $4 billion, indicating year-over-year growth of 8.8%. For earnings, the consensus mark is pegged at $1.6 per share, suggesting a 16.3% rise from the year-ago quarter’s actual. The company beat the consensus estimate in the past four quarters, with an average surprise of 4.5%.

TT currently has an Earnings ESP of +1.01% and a Zacks Rank of 3. The company is scheduled to declare its first-quarter results on Apr 30.

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

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WEX Inc. (WEX) : Free Stock Analysis Report

Trane Technologies plc (TT) : Free Stock Analysis Report

Spotify Technology (SPOT) : Free Stock Analysis Report

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Zacks Investment Research