What Do Analysts Expect from Spotify in Q1 2019?



Spotify’s revenue expected to rise 26%

Spotify (SPOT) is scheduled to announce its first-quarter earnings results on April 29, 2019. Analysts expect the company to post sales of $1.64 billion in the first quarter, a rise of 26% YoY (year-over-year) compared to its sales of $1.3 billion in the first quarter of 2018.

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Earnings growth of 66.4% expected

Spotify’s non-generally accepted accounting principles EPS are expected to rise 66.40% YoY from -$1.16 in the first quarter of 2018 to -$0.39 in the first quarter of 2019.

Spotify has managed to beat analysts’ earnings estimates in two out of the last four quarters. The company posted EPS of $2.6 in the fourth quarter of 2018, far above analysts’ estimate of -$0.21. It posted EPS of $0.26 in the third quarter of 2018, 162% above the estimate of -$0.42. As we can see in the chart above, Spotify missed its second-quarter earnings estimate of -$0.78, reporting earnings of -$2.52.

The company also missed the consensus earnings estimate of -$0.42 by 176% with EPS of -$1.16 in the first quarter of 2018. Spotify stock has fallen ~8% since its IPO in April 2018 despite a gain of 24% this year.

Investors will want Spotify to yet again beat analysts’ estimates in the first quarter, which will most likely drive its share price higher.


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