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Will Higher Average Fees Aid Coinbase (COIN) in Q4 Earnings?
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Coinbase Global (COIN - Free Report) is set to report fourth-quarter 2023 earnings on Feb 15, after market close. This company delivered an earnings surprise in each of the reported quarters of 2023.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors at Play
Trading volumes in the fourth quarter are likely to have been weighed down by the continued decline in crypto asset volatility, the primary driver of trading business.
The Zacks Consensus Estimate for total trading volume is pegged at 116 million, indicating a decline of 20% from the year-ago reported number. The consensus estimate for total volume- Consumer is pegged at 17.11 million, suggesting a 14.5% decline from the year-ago reported number. The consensus mark for total volume- Institution is pegged at 104, down 16.8% from the year-ago reported number.
Though trading volumes have declined, transaction revenues are likely to have improved, given higher blended average fee for Consumer. A prudent mix of simple and advanced trading volume is likely to have aided the blended average fee. The Zacks Consensus Estimate for transaction revenues is pegged at $344 million, indicating an increase of 6.8% from the year-ago reported figure.
The Zacks Consensus Estimate for transaction revenue - Consumer is pegged at $343 million, up 11% from the year-ago reported number. The consensus estimate for transaction revenue - Institutional is pegged at $21 million, up 56% from the year-ago reported number
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Coinbase 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) that increases the odds of an earnings beat.
Earnings ESP: Coinbase's Earnings ESP is +108.33%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Coinbase currently carries a Zacks Rank #3.
Other Stocks to Consider
Investors can also consider the following players from the Finance space that have the right combination of elements to beat on earnings in this reporting cycle.
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +3.35% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94, indicating a year-over-year decline of 9.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACGL’s earnings beat estimates in each of the last four quarters.
Energy Transfer (ET - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #1 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 29 cents, indicating a year-over-year decrease of 14.7%.
ET’s earnings beat estimates in one of the last four quarters and missed in the other three.
Kraft Heinz Company (KHC - Free Report) has an Earnings ESP of +0.14% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $77, indicating a year-over-year decrease of 9.4%.
KHC’s earnings beat estimates in each of the last four quarters.
Image: Shutterstock
Will Higher Average Fees Aid Coinbase (COIN) in Q4 Earnings?
Coinbase Global (COIN - Free Report) is set to report fourth-quarter 2023 earnings on Feb 15, after market close. This company delivered an earnings surprise in each of the reported quarters of 2023.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Factors at Play
Trading volumes in the fourth quarter are likely to have been weighed down by the continued decline in crypto asset volatility, the primary driver of trading business.
The Zacks Consensus Estimate for total trading volume is pegged at 116 million, indicating a decline of 20% from the year-ago reported number. The consensus estimate for total volume- Consumer is pegged at 17.11 million, suggesting a 14.5% decline from the year-ago reported number. The consensus mark for total volume- Institution is pegged at 104, down 16.8% from the year-ago reported number.
Though trading volumes have declined, transaction revenues are likely to have improved, given higher blended average fee for Consumer. A prudent mix of simple and advanced trading volume is likely to have aided the blended average fee. The Zacks Consensus Estimate for transaction revenues is pegged at $344 million, indicating an increase of 6.8% from the year-ago reported figure.
The Zacks Consensus Estimate for transaction revenue - Consumer is pegged at $343 million, up 11% from the year-ago reported number. The consensus estimate for transaction revenue - Institutional is pegged at $21 million, up 56% from the year-ago reported number
What Our Quantitative Model Predicts
Our proven model predicts an earnings beat for Coinbase 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) that increases the odds of an earnings beat.
Earnings ESP: Coinbase's Earnings ESP is +108.33%. You can uncover the best stocks to buy or sell before they’re 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 #3.
Other Stocks to Consider
Investors can also consider the following players from the Finance space that have the right combination of elements to beat on earnings in this reporting cycle.
Arch Capital Group (ACGL - Free Report) has an Earnings ESP of +3.35% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $1.94, indicating a year-over-year decline of 9.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ACGL’s earnings beat estimates in each of the last four quarters.
Energy Transfer (ET - Free Report) has an Earnings ESP of +0.69% and a Zacks Rank #1 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at 29 cents, indicating a year-over-year decrease of 14.7%.
ET’s earnings beat estimates in one of the last four quarters and missed in the other three.
Kraft Heinz Company (KHC - Free Report) has an Earnings ESP of +0.14% and a Zacks Rank #3 at present. The Zacks Consensus Estimate for fourth-quarter 2023 earnings is pegged at $77, indicating a year-over-year decrease of 9.4%.
KHC’s earnings beat estimates in each of the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.