Spotify Technology S.A. (NYSE:SPOT) is set to announce its first-quarter 2024 results on April 23, prior to the opening bell.
Historically, Spotify’s earnings have often fallen short of the Consensus Estimate. Out of the last four quarters, it missed expectations three times and exceeded them once, with an average negative surprise of 62.5%.
In terms of expectations for Q1, analysts anticipate revenues of $3.88 billion, reflecting a year-over-year growth of 18.9%. This growth is expected to be driven by an increase in subscribers, monthly active users, and average revenue per user.
The consensus estimate for earnings per share is 66 cents, a significant improvement from the loss of $1.24 per share reported in the same quarter last year. A robust performance in the podcast business is anticipated to contribute to strong margins for the quarter.
Investors may consider other stocks in the broader business services sector that show potential for earnings outperformance. Two such stocks are WEX (NYSE:WEX) and Trane Technologies (NYSE:TT).
WEX is expected to report revenues of $653.6 million for Q1 2024, with earnings per share estimated at $3.5. It has a track record of beating consensus estimates.
Trane Technologies anticipates revenues of $4 billion for the same period, with earnings per share estimated at $1.6. It also has a history of surpassing consensus estimates.
Investors will be closely watching Spotify’s earnings report for insights into its performance and growth trajectory in the competitive streaming market.
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Author Stephanie Bédard-Châteauneuf 