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Coinbase (COIN) to Report Q2 Earnings: What's in the Cards?
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Coinbase Global (COIN - Free Report) is slated to report second-quarter 2022 results on Aug 9, after the closing bell. COIN delivered an earnings surprise in two of the last four reported quarters, while missing in two.
Let’s see how things have shaped up prior to the announcement.
COIN’s second-quarter results are likely to benefit from increased adoption of a greater number of crypto assets and higher volatility coupled with a rise in interest across the entire crypto-economy.
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.
Ethereum’s trading volume growth is likely to have been aided by an increase in institutional interest, the launch of Ethereum 2.0 staking products, and growth in DeFi and NFT.
An increase in MTUs and elevated trading volumes per MTU are likely to have aided Retail transaction revenues. The Zacks Consensus Estimate for Retail transaction revenues, net, is pegged at $629 million.
Improved transactional revenues along with subscription and services revenues are likely to have aided the top line in the second quarter. The Zacks Consensus Estimate for revenues is pegged at $877 billion for the to-be-reported quarter.
Coinbase noted a strong crypto price cycle with high prices of many crypto assets, high levels of 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 cryptoeconomy and thus is expected to have benefited from this tailwind.
However, increased competition is likely to have been an overhang. Operating expense is likely to have increased, given higher trading volumes, account verification fees, payment processing fees and digital advertising spend.
Coinbase expects transaction expenses in the to-be-reported quarter to be in the low to mid-20s, attributable to higher blockchain reward revenues and operating expenses.
What the Zacks Model Says
Our proven model predicts an earnings beat for Coinbase Global this time around. This is because it has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP: Coinbase Global has an Earnings ESP of +52.69%. This is because the Most Accurate Estimate of a loss of $1.44 is pegged lower than the Zacks Consensus Estimate of a loss of $3.04. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Some other stocks from the finance sector with the perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
American Equity Investment (AEL - Free Report) has an Earnings ESP of +0.96 and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at 79 cents, indicating a decrease of 19.4% from the year-ago reported figure.
AEL’s earnings beat estimates in two of the last four reported quarters and missed in the other two.
Lemonade (LMND - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2. The Zacks Consensus Estimate for the second quarter is pegged at a loss of $1.36, indicating a decrease of 51.1% from the year-ago reported figure.
Lemonade beat earnings estimates in two of the last four reported quarters and missed in the other two.
Atlas has an Earnings ESP of +9.72% and a Zacks Rank #2. The Zacks Consensus Estimate for the second quarter 2022 earnings is pegged at 36 cents, down 7.7% from the year-ago reported loss of 72 cents.
Atlas beat estimates in two of the last four reported quarters and missed in the other two.
Image: Bigstock
Coinbase (COIN) to Report Q2 Earnings: What's in the Cards?
Coinbase Global (COIN - Free Report) is slated to report second-quarter 2022 results on Aug 9, after the closing bell. COIN delivered an earnings surprise in two of the last four reported quarters, while missing in two.
Let’s see how things have shaped up prior to the announcement.
COIN’s second-quarter results are likely to benefit from increased adoption of a greater number of crypto assets and higher volatility coupled with a rise in interest across the entire crypto-economy.
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.
Ethereum’s trading volume growth is likely to have been aided by an increase in institutional interest, the launch of Ethereum 2.0 staking products, and growth in DeFi and NFT.
An increase in MTUs and elevated trading volumes per MTU are likely to have aided Retail transaction revenues. The Zacks Consensus Estimate for Retail transaction revenues, net, is pegged at $629 million.
Improved transactional revenues along with subscription and services revenues are likely to have aided the top line in the second quarter. The Zacks Consensus Estimate for revenues is pegged at $877 billion for the to-be-reported quarter.
Coinbase noted a strong crypto price cycle with high prices of many crypto assets, high levels of 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 cryptoeconomy and thus is expected to have benefited from this tailwind.
However, increased competition is likely to have been an overhang. Operating expense is likely to have increased, given higher trading volumes, account verification fees, payment processing fees and digital advertising spend.
Coinbase expects transaction expenses in the to-be-reported quarter to be in the low to mid-20s, attributable to higher blockchain reward revenues and operating expenses.
What the Zacks Model Says
Our proven model predicts an earnings beat for Coinbase Global this time around. This is because it has the right combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold).
Earnings ESP: Coinbase Global has an Earnings ESP of +52.69%. This is because the Most Accurate Estimate of a loss of $1.44 is pegged lower than the Zacks Consensus Estimate of a loss of $3.04. 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 Global currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Some other stocks from the finance sector with the perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
American Equity Investment (AEL - Free Report) has an Earnings ESP of +0.96 and a Zacks Rank of 3. The Zacks Consensus Estimate for second-quarter 2022 earnings is pegged at 79 cents, indicating a decrease of 19.4% from the year-ago reported figure.
AEL’s earnings beat estimates in two of the last four reported quarters and missed in the other two.
Lemonade (LMND - Free Report) has an Earnings ESP of +12.50% and a Zacks Rank #2. The Zacks Consensus Estimate for the second quarter is pegged at a loss of $1.36, indicating a decrease of 51.1% from the year-ago reported figure.
Lemonade beat earnings estimates in two of the last four reported quarters and missed in the other two.
Atlas has an Earnings ESP of +9.72% and a Zacks Rank #2. The Zacks Consensus Estimate for the second quarter 2022 earnings is pegged at 36 cents, down 7.7% from the year-ago reported loss of 72 cents.
Atlas beat estimates in two of the last four reported quarters and missed in the other two.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.