Equities Analysts Set Expectations for SPOT FY2027 Earnings

Key Points

• Erste Group Bank lowered Spotify’s FY2027 EPS estimate to $17.52 from $17.74, compared with the broader consensus estimate of $14.19.
• Spotify’s latest quarter fell short of expectations, reporting $3.03 EPS versus $3.16 expected and $5.45 billion in revenue versus $5.47 billion projected; revenue still grew 13.9% year over year.
• Analysts maintain a generally positive view, with Spotify carrying a “Moderate Buy” consensus rating and an average price target of $594.50, versus a reported share price of $517.93.

Spotify Technology (NYSE:SPOT - Free Report) - Stock analysts at Erste Group Bank reduced their FY2027 earnings estimates for Spotify Technology in a research note issued on Friday, September 18th. Erste Group Bank analyst S. Lingnau now expects that the company will post earnings per share of $17.52 for the year, down from their previous estimate of $17.74. The consensus estimate for Spotify Technology's current full-year earnings is $14.19 per share.

Spotify Technology (NYSE:SPOT - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported $3.03 EPS for the quarter, missing analysts' consensus estimates of $3.16 by ($0.13). The firm had revenue of $5.45 billion for the quarter, compared to the consensus estimate of $5.47 billion. Spotify Technology had a net margin of 18.44% and a return on equity of 41.39%. The company's quarterly revenue was up 13.9% compared to the same quarter last year. During the same quarter in the prior year, the company earned ($0.42) earnings per share.

Several other research firms have also recently weighed in on SPOT. Weiss Ratings upgraded Spotify Technology from a "hold (c)" rating to a "hold (c+)" rating in a report on Wednesday, August 26th. Cantor Fitzgerald boosted their target price on Spotify Technology from $510.00 to $530.00 and gave the company a "neutral" rating in a research note on Wednesday, August 5th. Guggenheim restated a "buy" rating and set a $565.00 target price on shares of Spotify Technology in a report on Wednesday, August 5th. Rosenblatt Securities dropped their price target on Spotify Technology from $531.00 to $527.00 and set a "neutral" rating for the company in a research note on Wednesday, August 5th. Finally, Benchmark cut their price target on shares of Spotify Technology from $695.00 to $650.00 and set a "buy" rating on the stock in a report on Wednesday, July 22nd. One investment analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and six have issued a Hold rating to the stock. According to MarketBeat.com, Spotify Technology has a consensus rating of "Moderate Buy" and a consensus target price of $594.50.

Spotify Technology Price Performance

NYSE SPOT opened at $517.93 on Tuesday. Spotify Technology has a 1 year low of $405.00 and a 1 year high of $740.20. The stock has a market capitalization of $106.63 billion, a PE ratio of 32.25, a PEG ratio of 1.51 and a beta of 1.59. The business's 50-day moving average is $515.04 and its 200 day moving average is $495.82.

Insider Activity at Spotify Technology

In related news, CEO Alex Norström sold 5,436 shares of the company's stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $502.10, for a total value of $2,729,415.60. Following the sale, the chief executive officer directly owned 66,773 shares of the company's stock, valued at $33,526,723.30. This represents a 7.53% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Gustav Söderström sold 20,913 shares of the firm's stock in a transaction on Monday, September 14th. The shares were sold at an average price of $544.19, for a total value of $11,380,645.47. Following the transaction, the chief executive officer directly owned 20,025 shares of the company's stock, valued at $10,897,404.75. This represents a 51.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 73,451 shares of company stock valued at $37,258,896 in the last three months. Corporate insiders own 0.40% of the company's stock.

Institutional Investors Weigh In On Spotify Technology

Hedge funds and other institutional investors have recently bought and sold shares of the business. Tsfg LLC increased its stake in shares of Spotify Technology by 39.7% during the second quarter. Tsfg LLC now owns 81 shares of the company's stock worth $37,000 after acquiring an additional 23 shares during the period. Carl P. Sherr & Co. LLC boosted its holdings in Spotify Technology by 0.7% in the 1st quarter. Carl P. Sherr & Co. LLC now owns 4,138 shares of the company's stock valued at $2,007,000 after purchasing an additional 27 shares in the last quarter. CNB Bank boosted its holdings in Spotify Technology by 3.5% in the 4th quarter. CNB Bank now owns 831 shares of the company's stock valued at $483,000 after purchasing an additional 28 shares in the last quarter. Fidelis Capital Partners LLC increased its position in Spotify Technology by 2.7% during the 4th quarter. Fidelis Capital Partners LLC now owns 1,094 shares of the company's stock worth $635,000 after purchasing an additional 29 shares during the period. Finally, Verus Capital Partners LLC raised its stake in shares of Spotify Technology by 8.7% during the 4th quarter. Verus Capital Partners LLC now owns 364 shares of the company's stock worth $211,000 after buying an additional 29 shares in the last quarter. Hedge funds and other institutional investors own 84.09% of the company's stock.

Spotify Technology Company Profile

Spotify Technology SA is a Luxembourg-based audio streaming company that operates the Spotify platform. The service gives users access to a broad catalog of music, podcasts and audiobooks, with features for searching, discovering, creating and sharing audio content across connected devices.

Spotify offers an ad-supported service at no subscription cost and paid Premium plans that provide additional features, including ad-free listening and offline playback. The company generates revenue primarily through subscriptions and advertising, while working with music labels, publishers, podcast creators and other rights holders to distribute content.

Founded in Stockholm in 2006 by Daniel Ek and Martin Lorentzon, Spotify launched its streaming service in 2008.

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