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Coinbase (COIN) to Report Q4 Earnings: What's in the Cards?
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Coinbase Global (COIN - Free Report) is slated to report fourth-quarter 2021 results on Feb 24, before the opening bell. The company delivered an earnings surprise in one of the three reported quarters of 2021, while missing in two.
Let’s see how things have shaped up prior to the announcement.
Increased adoption of a greater number of crypto assets and increased volatility coupled with increased interest across the entire crypto-economy are likely to aid fourth-quarter results. 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.
An increase in institutional interest, the launch of Ethereum 2.0 staking products in April 2021, and growth in DeFi and NFT are likely to have aided Ethereum trading volume growth.
Retail transaction revenues are expected to have benefited from an increase in MTUs and elevated trading volumes per MTU. The Zacks Consensus Estimate for Retain transaction revenues, net, is pegged at $1.2 billion.
Improved transactional revenues along with subscription and services revenues are likely to have aided the top line in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $1.8 billion for the fourth 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.
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 estimated transaction expenses in the to-be-reported quarter to be in the mid-teens as a percent of revenues. Technology and development and general and administrative expenses combined are expected to be $1.4 billion. As COIN has been ramping up brand investments, it estimates sales and marketing to be higher sequentially.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Coinbase Global 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. That is not the case as you can see below.
Earnings ESP: Coinbase Global has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.94. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Some stocks from the finance sector with the perfect mix of elements to surpass estimates in their upcoming quarterly releases are as follows:
Extra Space Storage (EXR - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #3. The Zacks Consensus Estimate for the fourth quarter is pegged at $1.86, indicating an increase of 25.7% from the year-ago reported figure.
Extra Space Storage delivered an earnings beat in all the three reported quarters of 2021.
Crescent Capital BDC (CCAP - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3. The Zacks Consensus Estimate for the fourth quarter is pegged at 41 cents, indicating a decrease of 12.8% from the year-ago reported figure.
Crescent Capital delivered an earnings beat in one of the three reported quarters of 2021 while missing in two.
Main Street Capital (MAIN - Free Report) has an Earnings ESP of +4.02% and a Zacks Rank #2. The Zacks Consensus Estimate for the fourth quarter is pegged at 66 cents, indicating an increase of 11.9% from the year-ago reported figure.
Main Street Capital delivered an earnings beat in all the three reported quarters of 2021.
Image: Bigstock
Coinbase (COIN) to Report Q4 Earnings: What's in the Cards?
Coinbase Global (COIN - Free Report) is slated to report fourth-quarter 2021 results on Feb 24, before the opening bell. The company delivered an earnings surprise in one of the three reported quarters of 2021, while missing in two.
Let’s see how things have shaped up prior to the announcement.
Increased adoption of a greater number of crypto assets and increased volatility coupled with increased interest across the entire crypto-economy are likely to aid fourth-quarter results. 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.
An increase in institutional interest, the launch of Ethereum 2.0 staking products in April 2021, and growth in DeFi and NFT are likely to have aided Ethereum trading volume growth.
Retail transaction revenues are expected to have benefited from an increase in MTUs and elevated trading volumes per MTU. The Zacks Consensus Estimate for Retain transaction revenues, net, is pegged at $1.2 billion.
Improved transactional revenues along with subscription and services revenues are likely to have aided the top line in the to-be-reported quarter. The Zacks Consensus Estimate for revenues is pegged at $1.8 billion for the fourth 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.
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 estimated transaction expenses in the to-be-reported quarter to be in the mid-teens as a percent of revenues. Technology and development and general and administrative expenses combined are expected to be $1.4 billion. As COIN has been ramping up brand investments, it estimates sales and marketing to be higher sequentially.
What the Zacks Model Says
Our proven model does not conclusively predict an earnings beat for Coinbase Global 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. That is not the case as you can see below.
Earnings ESP: Coinbase Global has an Earnings ESP of 0.00%. This is because both the Most Accurate Estimate and the Zacks Consensus Estimate are pegged at $1.94. 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.
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:
Extra Space Storage (EXR - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #3. The Zacks Consensus Estimate for the fourth quarter is pegged at $1.86, indicating an increase of 25.7% from the year-ago reported figure.
Extra Space Storage delivered an earnings beat in all the three reported quarters of 2021.
Crescent Capital BDC (CCAP - Free Report) has an Earnings ESP of +1.61% and a Zacks Rank #3. The Zacks Consensus Estimate for the fourth quarter is pegged at 41 cents, indicating a decrease of 12.8% from the year-ago reported figure.
Crescent Capital delivered an earnings beat in one of the three reported quarters of 2021 while missing in two.
Main Street Capital (MAIN - Free Report) has an Earnings ESP of +4.02% and a Zacks Rank #2. The Zacks Consensus Estimate for the fourth quarter is pegged at 66 cents, indicating an increase of 11.9% from the year-ago reported figure.
Main Street Capital delivered an earnings beat in all the three reported quarters of 2021.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.