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Coinbase Global (COIN) to Post Q4 Earnings: What's in Store?
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Coinbase Global (COIN - Free Report) is slated to report fourth-quarter 2022 results on Feb 21, after the closing bell. COIN delivered an earnings surprise in one of the last four reported quarters, while missing in three.
Let’s see how things have shaped up prior to the announcement.
Increased adoption of a greater number of crypto assets, higher volatility and rising interest in the entire crypto economy have likely aided COIN’s fourth quarter. However, soft crypto market conditions are likely to have been a dampener.
Retail, institutional and ecosystem partners are likely to have grown across all key metrics, including Verified Users, retail Monthly Transacting Users (MTUs), Trading Volume and Assets on Platform.
An increase in institutional interest, the launch of Ethereum 2.0 staking products, and growth in DeFi and NFT likely have driven Ethereum’s trading volume growth.
COIN estimates sequentially lower MTUs in the fourth quarter to have weighed on trading volumes and, in turn, put pressure on the top line in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $586 million for the to-be-reported quarter, indicating a decline of 76.5% from the year-ago reported number.
However, improved subscription and services revenues are likely to have limited the downside. Given an improving rate environment, COIN estimates a rise in subscription and services revenues for the to-be-reported quarter.
Coinbase noted a strong crypto price cycle, with high prices of many crypto assets, rising volatility, and high interest in crypto across retail and institutional users in the to-be-reported quarter. COIN is a market-leading brand exclusively focused on the crypto economy. Thus, it is expected to have benefited from this tailwind.
However, increased competition is likely to have been an overhang. Operating expenses are likely to have increased, given higher trading volumes, account verification fees, payment processing fees and digital advertising spend. COIN estimates higher sales and marketing expenses for the fourth quarter than the third quarter due to seasonally higher spend.
Coinbase expects transaction expenses as a percentage of revenue in the to-be-reported quarter to be in the low-20s.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Coinbase this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case below, as you can see.
Earnings ESP: Coinbase has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of $2.23. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Some stocks from the finance sector with the perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
Bank Of Montreal (BMO - Free Report) has an Earnings ESP of +0.14% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $2.29, indicating a decrease of 25.4% from the year-ago reported figure.
BMO’s earnings beat estimates in three of the last four reported quarters, while missing in one.
Broadstone Net Lease, Inc. (BNL - Free Report) has an Earnings ESP of +3.54% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at 38 cents per share, indicating an increase of 11.8% from the year-ago reported figure.
BNL’s earnings missed estimates in three of the last four reported quarters, while meeting in one.
Extra Space Storage (EXR - Free Report) has an Earnings ESP of +4.01% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $2.08, indicating an increase of 8.9% from the year-ago reported figure.
EXR’s earnings beat estimates in the last four reported quarters.
Image: Bigstock
Coinbase Global (COIN) to Post Q4 Earnings: What's in Store?
Coinbase Global (COIN - Free Report) is slated to report fourth-quarter 2022 results on Feb 21, after the closing bell. COIN delivered an earnings surprise in one of the last four reported quarters, while missing in three.
Let’s see how things have shaped up prior to the announcement.
Increased adoption of a greater number of crypto assets, higher volatility and rising interest in the entire crypto economy have likely aided COIN’s fourth quarter. However, soft crypto market conditions are likely to have been a dampener.
Retail, institutional and ecosystem partners are likely to have grown across all key metrics, including Verified Users, retail Monthly Transacting Users (MTUs), Trading Volume and Assets on Platform.
An increase in institutional interest, the launch of Ethereum 2.0 staking products, and growth in DeFi and NFT likely have driven Ethereum’s trading volume growth.
COIN estimates sequentially lower MTUs in the fourth quarter to have weighed on trading volumes and, in turn, put pressure on the top line in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $586 million for the to-be-reported quarter, indicating a decline of 76.5% from the year-ago reported number.
However, improved subscription and services revenues are likely to have limited the downside. Given an improving rate environment, COIN estimates a rise in subscription and services revenues for the to-be-reported quarter.
Coinbase noted a strong crypto price cycle, with high prices of many crypto assets, rising volatility, and high interest in crypto across retail and institutional users in the to-be-reported quarter. COIN is a market-leading brand exclusively focused on the crypto economy. Thus, it is expected to have benefited from this tailwind.
However, increased competition is likely to have been an overhang. Operating expenses are likely to have increased, given higher trading volumes, account verification fees, payment processing fees and digital advertising spend. COIN estimates higher sales and marketing expenses for the fourth quarter than the third quarter due to seasonally higher spend.
Coinbase expects transaction expenses as a percentage of revenue in the to-be-reported quarter to be in the low-20s.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Coinbase this time around. This is because a stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). This is not the case below, as you can see.
Earnings ESP: Coinbase has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at a loss of $2.23. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Coinbase Global, Inc. Price and EPS Surprise
Coinbase Global, Inc. price-eps-surprise | Coinbase Global, Inc. Quote
Zacks Rank: Coinbase currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Some stocks from the finance sector with the perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
Bank Of Montreal (BMO - Free Report) has an Earnings ESP of +0.14% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $2.29, indicating a decrease of 25.4% from the year-ago reported figure.
BMO’s earnings beat estimates in three of the last four reported quarters, while missing in one.
Broadstone Net Lease, Inc. (BNL - Free Report) has an Earnings ESP of +3.54% and a Zacks Rank #2. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at 38 cents per share, indicating an increase of 11.8% from the year-ago reported figure.
BNL’s earnings missed estimates in three of the last four reported quarters, while meeting in one.
Extra Space Storage (EXR - Free Report) has an Earnings ESP of +4.01% and a Zacks Rank of 3. The Zacks Consensus Estimate for fourth-quarter 2022 earnings is pegged at $2.08, indicating an increase of 8.9% from the year-ago reported figure.
EXR’s earnings beat estimates in the last four reported quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.