Coinbase Global (COIN - Free Report) is slated to report second-quarter 2023 results on Aug 3, after the closing bell. COIN delivered an earnings surprise of 110.42% in the last reported quarter.
Let’s see how things have shaped up prior to the announcement.
A strong crypto price cycle, with high prices of many crypto assets, rising volatility, and high interest in crypto across retail and institutional users are likely to have benefited COIN in the second quarter of 2023.
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.
Subscription and services revenues are likely to have improved on growth in market cap, notably with Bitcoin and Ethereum prices. Coinbase estimates subscription services revenues to be about $300 million in the second quarter.
The Zacks Consensus Estimate for revenues is pegged at $643.4 million for the to-be-reported quarter, indicating a decline of 20.4% from the year-ago reported number.
However, increased competition is likely to have been an overhang. COIN estimates technology and development and general and administrative expenses to be $600 million and $650 million in the second quarter. It estimates sales and marketing expenses to be between $80 million and $90 million. The company remains focused on its cost-containment efforts that are likely to have helped deliver improved adjusted EBITDA.
Coinbase expects transaction expenses as a percentage of revenues in the to-be-reported quarter to be in the low to mid-teens.
The Zacks Consensus Estimate for the second quarter is pegged at a loss of 78 cents, wider than the year-ago loss of 58 cents.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Coinbase this time around. This is because the stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). That is not the case as you can see below
Earnings ESP: Coinbase has an Earnings ESP of -3.68%. This is because the Most Accurate Estimate is pegged at a loss of 81 cents, while the Zacks Consensus Estimate is pegged at a loss of 78 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
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:
Cboe Global Markets (CBOE - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank of 3. The Zacks Consensus Estimate for Cboe Global’ second-quarter 2023 earnings is pegged at $1.76 per share, indicating an increase of 5.4% from the year-ago reported figure.
CBOE’s earnings beat estimates in three of the last four quarters while missed in one.
Lincoln National (LNC - Free Report) has an Earnings ESP of +2.93% and a Zacks Rank of 3. The Zacks Consensus Estimate for Lincoln National’s second-quarter 2023 earnings is pegged at $1.92 per share, indicating a decrease of 13.9% from the year-ago reported figure.
LNC’s earnings missed estimates in three of the four trailing quarters while beating in one.
American Equity Investment has an Earnings ESP of +1.12% and a Zacks Rank of 2. The Zacks Consensus Estimate for AEL ’s second-quarter 2023 earnings is pegged at $1.65 per share, indicating an increase of 68.3% from the year-ago reported figure.
AEL’s earnings beat estimates in three of the last four quarters and missed in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Coinbase Global (COIN - Free Report) is slated to report second-quarter 2023 results on Aug 3, after the closing bell. COIN delivered an earnings surprise of 110.42% in the last reported quarter.
Let’s see how things have shaped up prior to the announcement.
A strong crypto price cycle, with high prices of many crypto assets, rising volatility, and high interest in crypto across retail and institutional users are likely to have benefited COIN in the second quarter of 2023.
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.
Subscription and services revenues are likely to have improved on growth in market cap, notably with Bitcoin and Ethereum prices. Coinbase estimates subscription services revenues to be about $300 million in the second quarter.
The Zacks Consensus Estimate for revenues is pegged at $643.4 million for the to-be-reported quarter, indicating a decline of 20.4% from the year-ago reported number.
However, increased competition is likely to have been an overhang. COIN estimates technology and development and general and administrative expenses to be $600 million and $650 million in the second quarter. It estimates sales and marketing expenses to be between $80 million and $90 million. The company remains focused on its cost-containment efforts that are likely to have helped deliver improved adjusted EBITDA.
Coinbase expects transaction expenses as a percentage of revenues in the to-be-reported quarter to be in the low to mid-teens.
The Zacks Consensus Estimate for the second quarter is pegged at a loss of 78 cents, wider than the year-ago loss of 58 cents.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Coinbase this time around. This is because the stock needs to have the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). That is not the case as you can see below
Earnings ESP: Coinbase has an Earnings ESP of -3.68%. This is because the Most Accurate Estimate is pegged at a loss of 81 cents, while the Zacks Consensus Estimate is pegged at a loss of 78 cents. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
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:
Cboe Global Markets (CBOE - Free Report) has an Earnings ESP of +0.13% and a Zacks Rank of 3. The Zacks Consensus Estimate for Cboe Global’ second-quarter 2023 earnings is pegged at $1.76 per share, indicating an increase of 5.4% from the year-ago reported figure.
CBOE’s earnings beat estimates in three of the last four quarters while missed in one.
Lincoln National (LNC - Free Report) has an Earnings ESP of +2.93% and a Zacks Rank of 3. The Zacks Consensus Estimate for Lincoln National’s second-quarter 2023 earnings is pegged at $1.92 per share, indicating a decrease of 13.9% from the year-ago reported figure.
LNC’s earnings missed estimates in three of the four trailing quarters while beating in one.
American Equity Investment has an Earnings ESP of +1.12% and a Zacks Rank of 2. The Zacks Consensus Estimate for AEL ’s second-quarter 2023 earnings is pegged at $1.65 per share, indicating an increase of 68.3% from the year-ago reported figure.
AEL’s earnings beat estimates in three of the last four quarters and missed in one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 5 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How To Profit From Trillions On Spending For Infrastructure >>
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