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The stock gained 13.4% over the past year. Despite an impressive gain, RIOT underperformed the 55% growth of the industry it belongs to and the Zacks S&P 500 composite’s 23.5% increase.
Based on EV-to-EBITDA, RIOT is currently trading at 9.54 compared with the industry’s 60.02. If we look at the Price/Earnings ratio, PSN shares are currently trading at -72 forward earnings, below the industry’s 38.92.
Sales and Margin Performance
The company had an exceptional 2023. Total revenues of the company increased 8.3% to $280.7 million. Adjusted EBITDA increased 131.4% year over year to $214 million. Improved operational efficiency resulted in such an impressive gain. Adjusted EBITDA margin increased to 76.3% from -25.9% from the preceding year.
Liquidity
RIOT’s current ratio (a measure of liquidity) was 8.3 at the end of fourth-quarter 2023 higher than the prior quarter’s 7.2 and 3.7 from the year-ago quarter. A current ratio of more than 1 often indicates a company’s efficiency in paying off its short-term debt obligations.
Sales and EPS Growth Prospects
The Zacks Consensus Estimate for RIOT’s 2024 sales and earnings per share (EPS) implies year-over-year growth of 25.8% but a decline of more than 100%, respectively. The estimate for EPS has declined by 2 cents over the past 30 days.
Conclusion
RIOT trades at a discount relative to its industry based on EV-to-EBITDA. The company’s liquidity position based on the current ratio remains healthy.
Since the stock has risen 13.4% in the past year, it may be poised for continued growth going forward as well, driven by operational efficiency and healthy liquidity.
Moreover, RIOT seems well-poised for an earnings beat. Our quantitative model suggests that the combination of two key elements — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of a positive earnings surprise. This is the case with RIOT at present, as it has an Earnings ESP of +17.48% and a Zacks Rank #2 (Buy). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Against this backdrop, it may not be a bad idea to buy this fundamentally strong stock that might continue growing post earnings.
Other Stocks That Warrant a Look
Here are a few stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
Trane Technologies (TT - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $4 billion, implying year-over-year growth of 8.8%. For earnings, the consensus mark is pegged at $1.6 per share, suggesting a 16.3% rise from the year-ago quarter’s actual. The company beat the consensus estimate in each of the past four quarters, with an average surprise of 4.5%.
AppLovin (APP - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $193.9 million, indicating a rise of more than 100% from the year-ago quarter. The consensus mark for earnings is pegged at 2 cents per share, suggesting a rise of more than 100% from the year-ago quarter. The company beat the consensus estimate in one of the past four quarters and missed in three instances, with an average negative surprise of 107.1%.
APP has an Earnings ESP of +2.66% and a current Zacks Rank of 3. The company is scheduled to post its first-quarter results on May 8.
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Should You Buy Riot Platforms (RIOT) Ahead of Q1 Earnings?
Riot Platforms (RIOT - Free Report) will report its first-quarter 2024 results on May 1, before market open.
Let’s check out how RIOT is currently doing.
Stock Performance & Valuation
The stock gained 13.4% over the past year. Despite an impressive gain, RIOT underperformed the 55% growth of the industry it belongs to and the Zacks S&P 500 composite’s 23.5% increase.
Riot Platforms, Inc. Price
Riot Platforms, Inc. price | Riot Platforms, Inc. Quote
Based on EV-to-EBITDA, RIOT is currently trading at 9.54 compared with the industry’s 60.02. If we look at the Price/Earnings ratio, PSN shares are currently trading at -72 forward earnings, below the industry’s 38.92.
Sales and Margin Performance
The company had an exceptional 2023. Total revenues of the company increased 8.3% to $280.7 million. Adjusted EBITDA increased 131.4% year over year to $214 million. Improved operational efficiency resulted in such an impressive gain. Adjusted EBITDA margin increased to 76.3% from -25.9% from the preceding year.
Liquidity
RIOT’s current ratio (a measure of liquidity) was 8.3 at the end of fourth-quarter 2023 higher than the prior quarter’s 7.2 and 3.7 from the year-ago quarter. A current ratio of more than 1 often indicates a company’s efficiency in paying off its short-term debt obligations.
Sales and EPS Growth Prospects
The Zacks Consensus Estimate for RIOT’s 2024 sales and earnings per share (EPS) implies year-over-year growth of 25.8% but a decline of more than 100%, respectively. The estimate for EPS has declined by 2 cents over the past 30 days.
Conclusion
RIOT trades at a discount relative to its industry based on EV-to-EBITDA. The company’s liquidity position based on the current ratio remains healthy.
Since the stock has risen 13.4% in the past year, it may be poised for continued growth going forward as well, driven by operational efficiency and healthy liquidity.
Moreover, RIOT seems well-poised for an earnings beat. Our quantitative model suggests that the combination of two key elements — a positive Earnings ESP and a Zacks Rank #3 (Hold) or better — increases the odds of a positive earnings surprise. This is the case with RIOT at present, as it has an Earnings ESP of +17.48% and a Zacks Rank #2 (Buy). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Against this backdrop, it may not be a bad idea to buy this fundamentally strong stock that might continue growing post earnings.
Other Stocks That Warrant a Look
Here are a few stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
Trane Technologies (TT - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $4 billion, implying year-over-year growth of 8.8%. For earnings, the consensus mark is pegged at $1.6 per share, suggesting a 16.3% rise from the year-ago quarter’s actual. The company beat the consensus estimate in each of the past four quarters, with an average surprise of 4.5%.
TT currently has an Earnings ESP of +1.01% and a Zacks Rank of 3. The company is scheduled to declare its first-quarter results on Apr 30. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
AppLovin (APP - Free Report) : The Zacks Consensus Estimate for the company’s first-quarter 2024 revenues is pegged at $193.9 million, indicating a rise of more than 100% from the year-ago quarter. The consensus mark for earnings is pegged at 2 cents per share, suggesting a rise of more than 100% from the year-ago quarter. The company beat the consensus estimate in one of the past four quarters and missed in three instances, with an average negative surprise of 107.1%.
APP has an Earnings ESP of +2.66% and a current Zacks Rank of 3. The company is scheduled to post its first-quarter results on May 8.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.