Coinbase Global (COIN) to Report Q3 Earnings: What's in Store?
Coinbase Global COIN is slated to report third-quarter 2023 results on Nov 2, after the closing bell. COIN delivered an earnings surprise in the last two reported quarters of 2023.
Let’s see how things have shaped up prior to the announcement.
Third-quarter results are likely to benefit from a strong crypto price cycle, with high prices of many crypto assets, rising volatility and high interest in crypto across retail and institutional users.
Retail, institutional and ecosystem partners are likely to have grown across all key metrics, including Verified Users, retail Monthly Transacting Users, 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. Fees are likely to have increased, driven by mix shift of trading volume. Coinbase estimates subscription services revenues to be about $300 million in the third quarter.
Transaction revenues are likely to have increased, driven by consumer and institutional revenues.
The Zacks Consensus Estimate for revenues is pegged at $650.8 million for the to-be-reported quarter, indicating an increase of 10.2% 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 $575 million and $625 million, respectively, in the third 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 mid-teens. Technology and development expenses are likely to have declined owing to improved operational efficiencies.
The Zacks Consensus Estimate for the third quarter is pegged at a loss of 54 cents per share, indicating an improvement from the year-ago loss of $2.43.
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 -8.03%. This is because the Most Accurate Estimate is pegged at a loss of 58 cents, while the Zacks Consensus Estimate is pegged at a loss of 54 cents. 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. 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 has an Earnings ESP of +0.71% and a Zacks Rank of 2. The Zacks Consensus Estimate for Cboe Global’s third-quarter 2023 earnings is pegged at $1.84 per share, indicating an increase of 5.8% from the year-ago reported figure.
CBOE’s earnings beat estimates in the last four quarters.
Enact Holdings ACT has an Earnings ESP of +2.33% and a Zacks Rank of 2. The Zacks Consensus Estimate for Enact Holdings’ third-quarter 2023 earnings is pegged at 86 cents per share, indicating a decrease of 26.5% from the year-ago reported figure.
ACT’s earnings beat estimates in three of the last four quarters and missed in the remaining one.
American International Group AIG has an Earnings ESP of +4.02% and a Zacks Rank of 2. The Zacks Consensus Estimate for AIG’s third-quarter 2023 earnings is pegged at $1.55 per share, indicating an increase of 134.9% from the year-ago reported figure.
AIG’s earnings beat estimates in each of the four trailing quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Coinbase Global, Inc. (COIN) : Free Stock Analysis Report
