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What Analyst Projections for Key Metrics Reveal About Spotify (SPOT) Q4 Earnings

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The upcoming report from Spotify (SPOT - Free Report) is expected to reveal quarterly earnings of $1.92 per share, indicating an increase of 592.3% compared to the year-ago period. Analysts forecast revenues of $4.36 billion, representing an increase of 10.3% year over year.

Over the last 30 days, there has been a downward revision of 1.6% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

Given this perspective, it's time to examine the average forecasts of specific Spotify metrics that are routinely monitored and predicted by Wall Street analysts.

The average prediction of analysts places 'Total Monthly Active Users (MAUs)' at 665.25 million. Compared to the current estimate, the company reported 602 million in the same quarter of the previous year.

Based on the collective assessment of analysts, 'Ad-Supported MAUs' should arrive at 420.15 million. Compared to the present estimate, the company reported 379 million in the same quarter last year.

According to the collective judgment of analysts, 'Premium Subscribers' should come in at 259.99 million. The estimate compares to the year-ago value of 236 million.

View all Key Company Metrics for Spotify here>>>

Shares of Spotify have experienced a change of +20.2% in the past month compared to the +2.9% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), SPOT is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>


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