The SPOT earnings report for the third quarter of 2018 is out and Spotify (NYSE:SPOT) stock is down today.
The bad news for Spotify stock has to do with the company’s guidance for the fourth quarter of 2018. The company is expecting to report revenue between $1.54 billion and $1.77 billion for its SPOT earnings report for the fourth quarter. This range still covers Wall Street’s revenue estimate of $1.69 billion for the quarter, but seems to be unsettling investors.
The guidance in the most recent SPOT earnings report drags down a solid quarter for the company. This includes earnings per share of 26 cents. That is up over its losses per share of $2.10 from the same time last year. It also easily beats out Wall Street’s losses per share estimate of 41 cents for the quarter, but couldn’t save Spotify stock today.
Net income reported in the SPOT earnings report for the third quarter of 2018 came in at $43 million. This is up from the music streaming company’s net loss of $278 million from the same period of the year prior.
SPOT earnings for the third quarter of the year also includes revenue of $1.54 billion. This is better than the company’s revenue of $1.17 billion reported in the third quarter of the previous year. It also beats out analysts’ revenue estimate of $1.51 billion for the period, but was unable to keep Spotify stock from dropping today.
SPOT stock is down 3% as of noon Thursday, but is up 13% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
