Spotify Technology S.A. (SPOT - Free Report) 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%.
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.
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 - Free Report) : 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 - Free Report) : 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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Spotify Technology S.A. (SPOT - Free Report) 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%.
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.
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 - Free Report) : 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 - Free Report) : 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.
Top 5 Dividend Stocks for Your Retirement
Zacks targets 5 well-established companies with solid fundamentals and a history of raising dividends. More importantly, they have the resources and will to likely pay them in the future.
Click now for a Special Report packed with unconventional wisdom and insights you simply won’t get from your neighborhood financial planner.
See our Top 5 now – the report is FREE >>
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