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Is a Beat in the Cards for Coinbase (COIN) in Q4 Earnings?
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Coinbase Global, Inc. (COIN - Free Report) is slated to report fourth-quarter 2023 results on Feb 15 after the closing bell. COIN delivered an earnings surprise in the last three reported quarters of 2023.
Let’s see how things have shaped up prior to the announcement.
Fourth-quarter results are likely to benefit from lower transaction, technology and development expenses, higher stablecoin revenues and a mix shift of trading volume, offset by a decline in consumer transaction revenues.
Subscription and services revenues are likely to have improved on higher stablecoin revenues, primarily attributable to increased average interest rates on USDC reserves, a rise in blockchain rewards from higher staked balances for certain assets and interest income generated on customer custodial cash. Fees are likely to have increased, driven by mix shift of trading volume.
Coinbase estimates subscription services revenues to remain unchanged from the third quarter at $300 million.
Transaction revenues are likely to have declined due to lower consumer transaction revenues, attributed to corresponding decreases in consumer Trading Volume as well as lower institutional transaction revenues.
The Zacks Consensus Estimate for revenues is pegged at $731.9 million for the to-be-reported quarter, indicating an increase of 16.3% from the year-ago reported number.
COIN estimates technology and development and general and administrative expenses between $525 million and $575 million, respectively, in the fourth quarter. It estimates sales and marketing expenses between $85 million and $95 million. The company remains focused on its cost-containment efforts that are likely to have helped deliver improved adjusted EBITDA.
Transaction expenses are likely to have decreased in the to-be-reported quarter because of a decline in payment processing and account verification expenses, transaction reversal losses and miner fees, primarily due to a fall in blockchain transmission volume and significant investments in batching and other optimizations in on-chain activity. Technology and development expenses are likely to have declined owing to a decrease in personnel-related expenses, website hosting and infrastructure costs.
The Zacks Consensus Estimate for the fourth quarter is pegged at a loss of 6 cents per share, indicating an increase of 97.5% from the year-ago reported number.
What the Zacks Model Says
Our proven model predicts an earnings beat for Coinbase this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Coinbase has an Earnings ESP of +200.00%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
CUBE’s earnings beat estimates in two of the last four quarters, matched in one and missed in the other one.
Gaming and Leisure Properties, Inc. (GLPI - Free Report) has an Earnings ESP of +0.54% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 93 cents, indicating a year-over-year increase of 4.4%.
GLPI’s earnings beat estimates in two of the last four quarters and matched in the other two.
Corebridge Financial, Inc. (CRBG - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 99 cents, indicating a year-over-year increase of 12.5%.
CRBG’s earnings beat estimates in three of the last four quarters and missed in the other one.
Image: Bigstock
Is a Beat in the Cards for Coinbase (COIN) in Q4 Earnings?
Coinbase Global, Inc. (COIN - Free Report) is slated to report fourth-quarter 2023 results on Feb 15 after the closing bell. COIN delivered an earnings surprise in the last three reported quarters of 2023.
Let’s see how things have shaped up prior to the announcement.
Fourth-quarter results are likely to benefit from lower transaction, technology and development expenses, higher stablecoin revenues and a mix shift of trading volume, offset by a decline in consumer transaction revenues.
Subscription and services revenues are likely to have improved on higher stablecoin revenues, primarily attributable to increased average interest rates on USDC reserves, a rise in blockchain rewards from higher staked balances for certain assets and interest income generated on customer custodial cash. Fees are likely to have increased, driven by mix shift of trading volume.
Coinbase estimates subscription services revenues to remain unchanged from the third quarter at $300 million.
Transaction revenues are likely to have declined due to lower consumer transaction revenues, attributed to corresponding decreases in consumer Trading Volume as well as lower institutional transaction revenues.
The Zacks Consensus Estimate for revenues is pegged at $731.9 million for the to-be-reported quarter, indicating an increase of 16.3% from the year-ago reported number.
COIN estimates technology and development and general and administrative expenses between $525 million and $575 million, respectively, in the fourth quarter. It estimates sales and marketing expenses between $85 million and $95 million. The company remains focused on its cost-containment efforts that are likely to have helped deliver improved adjusted EBITDA.
Transaction expenses are likely to have decreased in the to-be-reported quarter because of a decline in payment processing and account verification expenses, transaction reversal losses and miner fees, primarily due to a fall in blockchain transmission volume and significant investments in batching and other optimizations in on-chain activity. Technology and development expenses are likely to have declined owing to a decrease in personnel-related expenses, website hosting and infrastructure costs.
The Zacks Consensus Estimate for the fourth quarter is pegged at a loss of 6 cents per share, indicating an increase of 97.5% from the year-ago reported number.
What the Zacks Model Says
Our proven model predicts an earnings beat for Coinbase this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
Earnings ESP: Coinbase has an Earnings ESP of +200.00%. 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.
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:
CubeSmart (CUBE - Free Report) has an Earnings ESP of +0.89% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 68 cents, indicating a year-over-year increase of 1.49%. You can see the complete list of today’s Zacks #1 Rank stocks here.
CUBE’s earnings beat estimates in two of the last four quarters, matched in one and missed in the other one.
Gaming and Leisure Properties, Inc. (GLPI - Free Report) has an Earnings ESP of +0.54% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 93 cents, indicating a year-over-year increase of 4.4%.
GLPI’s earnings beat estimates in two of the last four quarters and matched in the other two.
Corebridge Financial, Inc. (CRBG - Free Report) has an Earnings ESP of +2.25% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 99 cents, indicating a year-over-year increase of 12.5%.
CRBG’s earnings beat estimates in three of the last four quarters and missed in the other one.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.