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Spotify (SPOT) to Report Q4 Earnings: What's in the Offing?
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Spotify Technology S.A. (SPOT - Free Report) will report fourth-quarter 2023 results on Feb 6, before the bell. The company has delivered a trailing four-quarter average earnings surprise of 31.4%.
Q4 Expectations
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $3.96 billion, indicating year-over-year growth of 22.4%. The 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 product and market mix.
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 the costs of promotional campaigns are low compared with the first and third quarters. The company is expected to have incurred a loss of 8 cents per share in the to-be-reported quarter. It had incurred a loss of $1.43 in the fourth quarter of 2022.
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. 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 0.00% and a Zacks Rank #1.
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.
Waste Connections (WCN - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.03 billion, indicating growth of 8.6%. For earnings, the consensus mark is pegged at $1.08 per share, up 21.4% from the year-ago quarter. The company beat the consensus estimate in all the past four quarters, with an average surprise of 1.48%.
WCN currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is scheduled to declare its fourth-quarter results on Feb 13.
Waste Management (WM - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $5.19 billion, indicating growth of 5.1%. For earnings, the consensus mark is pegged at $1.52 per share, up 16.9% from the year-ago quarter. The company beat the consensus estimate in two of the past four quarters and matched on the other two instances. It has a negative average surprise of 1%.
FI currently has an Earnings ESP of +0.46% and a Zacks Rank of 2. The company is scheduled to declare its fourth-quarter results on Feb 12.
Fidelity National (FIS - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.52 billion, indicating a decline of 32.2%. For earnings, the consensus mark is pegged at 95 cents per share, 44.4% below the year-ago quarter figure. The company beat the consensus estimate in three of the past four quarters and missed on the other instance. It has an average negative surprise of 7%.
FIS currently has an Earnings ESP of +3.40% and a Zacks Rank of 3. The company is scheduled to declare its fourth-quarter results on Feb 26.
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Spotify (SPOT) to Report Q4 Earnings: What's in the Offing?
Spotify Technology S.A. (SPOT - Free Report) will report fourth-quarter 2023 results on Feb 6, before the bell. The company has delivered a trailing four-quarter average earnings surprise of 31.4%.
Q4 Expectations
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $3.96 billion, indicating year-over-year growth of 22.4%. The 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 product and market mix.
Spotify Technology Price and EPS Surprise
Spotify Technology price-eps-surprise | Spotify Technology Quote
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 the costs of promotional campaigns are low compared with the first and third quarters. The company is expected to have incurred a loss of 8 cents per share in the to-be-reported quarter. It had incurred a loss of $1.43 in the fourth quarter of 2022.
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. 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 0.00% and a Zacks Rank #1.
You can see the complete list of today’s Zacks #1 Rank stocks here.
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.
Waste Connections (WCN - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.03 billion, indicating growth of 8.6%. For earnings, the consensus mark is pegged at $1.08 per share, up 21.4% from the year-ago quarter. The company beat the consensus estimate in all the past four quarters, with an average surprise of 1.48%.
WCN currently has an Earnings ESP of +0.05% and a Zacks Rank of 2. The company is scheduled to declare its fourth-quarter results on Feb 13.
Waste Management (WM - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $5.19 billion, indicating growth of 5.1%. For earnings, the consensus mark is pegged at $1.52 per share, up 16.9% from the year-ago quarter. The company beat the consensus estimate in two of the past four quarters and matched on the other two instances. It has a negative average surprise of 1%.
FI currently has an Earnings ESP of +0.46% and a Zacks Rank of 2. The company is scheduled to declare its fourth-quarter results on Feb 12.
Fidelity National (FIS - Free Report) : The Zacks Consensus Estimate for the company’s fourth-quarter revenues is pegged at $2.52 billion, indicating a decline of 32.2%. For earnings, the consensus mark is pegged at 95 cents per share, 44.4% below the year-ago quarter figure. The company beat the consensus estimate in three of the past four quarters and missed on the other instance. It has an average negative surprise of 7%.
FIS currently has an Earnings ESP of +3.40% and a Zacks Rank of 3. The company is scheduled to declare its fourth-quarter results on Feb 26.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.