Spotify is expected to report strong Q2 results with growing revenues and subscriber base.

From Nasdaq: 2024-07-22 12:17:00

Spotify Technology S.A. (SPOT) will report its second-quarter 2024 results on Jul 23, with earnings estimated at $1.1 per share and revenues at $4.1 billion, showcasing an 18.7% growth year-over-year. Estimates for the quarter have seen more downward revisions than positive ones recently, with a 1.8% decrease in 2024 earnings forecasts.

Although Spotify’s earnings history has been mixed, the stock has a negative earnings ESP of -9.70% and a Zacks Rank #1, indicating a lower likelihood of an earnings beat this time. The company’s upcoming results are expected to benefit from subscriber and MAU growth, with a consensus estimate for total MAUs at 631.3 million and premium subscribers at 245.3 billion.

Spotify’s stock has shown a significant 43% rally over the past six months but has declined by 3% and 6% in the past three and one months, respectively, signaling a correction phase. The company has demonstrated strong performance metrics, with price hikes driving top and bottom-line growth, supported by a loyal user base and cost reductions in 2023.

With a robust financial health and strong growth prospects, Spotify is set to deliver another solid performance in the upcoming quarter, with subscriber gains and ARPU increases boosting the bottom line. Despite recent corrections in the stock price, Spotify remains well-positioned in the music streaming sector, making it an attractive buy for investors during the earnings season.



Read more at Nasdaq: Pre-Q2 Earnings: Is Spotify (SPOT) a Portfolio Must-Have?