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Spotify (SPOT) to Report Q2 Earnings: What's in the Offing?

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Spotify Technology S.A. (SPOT - Free Report) will release second-quarter 2021 results on Jul 28, before the bell.

The company’s surprise history hasn’t been impressive. It delivered a negative earnings surprise of 75.4% in the last four quarters, on average.

Q2 Expectations

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $2.77 billion, indicating year-over-year growth of 33.1%. Growth of subscribers and monthly active users is likely to have benefited the top line. However, average revenue per user is expected to have declined due to shifts in both product mixes.

Gross margin is expected to be higher due to the impacts of seasonality. The metric is comparatively higher in the second and fourth quarters as costs of promotional campaigns are low compared with the first and third quarters. The company is expected to have incurred a loss of 55 cents per share in the to-be-reported quarter. It had incurred a loss of $2.1 in the second quarter of 2020.

What Our Model Says

Our proven model predicts 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. 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 +39.51% and a Zacks Rank #3.

Spotify Technology SA Price and EPS Surprise Spotify Technology SA Price and EPS Surprise

Spotify Technology SA price-eps-surprise | Spotify Technology SA Quote

Other Stocks That Warrant a Look

Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that these too have the right combination of elements to beat on earnings this season.

Visa (V - Free Report) with an Earnings ESP of +3.2% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Global Payments (GPN - Free Report) , with an Earnings ESP of +2.31% and a Zacks Rank of 2.

Aptiv (APTV - Free Report) with Earnings ESP of +0.29% and a Zacks Rank #3.

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

Visa Inc. (V) - free report >>

Global Payments Inc. (GPN) - free report >>

Aptiv PLC (APTV) - free report >>

Spotify Technology (SPOT) - free report >>