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Will Coinbase (COIN) Gain From Improved Trading in Q2 Earnings?
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Coinbase Global (COIN - Free Report) is set to report second-quarter 2024 results on Aug 1, after market close. This company delivered an earnings surprise in each of the last four reported quarters.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Increased crypto asset volatility and improved crypto asset prices are likely to have aided trading volumes in the second quarter. Crypto trading remains a major revenue driver of COIN. It has been prioritizing crypto utility by investing in infrastructure and foundational platforms like Base. Notably, Base has considerably lowered transaction fees and increased transaction speed.
Increased market share in the U.S. spot and derivatives markets and an expanded product portfolio and international market presence are likely to have driven trading volumes.
The Zacks Consensus Estimate for total trading volume is pegged at 266.6 million, indicating an improvement of nearly threefold from the year-ago reported number. The consensus estimate for total volume - Consumer is pegged at 43.6 million, suggesting a 211% increase from the year-ago reported number. The consensus mark for total volume - Institution is pegged at 185.5 million, indicating a surge of 137% from the year-ago reported number.
Transaction revenues are likely to have benefited from higher blended average fees for Consumer and Institutional.
While the blended average fee for Consumers is expected to have gained from a prudent mix of simple and advanced trading volume, growth in Coinbase Prime volume is expected to have led to a higher blended average fee rate at Institutional. The Zacks Consensus Estimate for transaction revenues is pegged at $714 million, indicating an increase of 140% from the year-ago reported figure.
The Zacks Consensus Estimate for transaction revenues - Consumer is pegged at $695 million, suggesting an increase of 124% from the year-ago reported number. The consensus estimate for transaction revenues - Institutional is pegged at $55 million, implying an upside of 221.6% from the year-ago reported number
What Our Quantitative Model Predicts
Our proven model does not conclusively predict 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. But that is not the case here.
Earnings ESP: Coinbase’s Earnings ESP is -20.43%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Affirm Holdings (AFRM - Free Report) has an Earnings ESP of +19.64% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at a loss of 45 cents per share, indicating an improvement of 34.8% from the year-ago reported figure.
AFRM’s earnings beat estimates in two of the last four quarters and missed in the remaining two.
Shift4 Payments (FOUR - Free Report) has an Earnings ESP of +0.47% and carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 91 cents, indicating a surge of 23% from the year-ago reported figure.
FOUR’s earnings beat estimates in two of the last four quarters and missed in the remaining two.
Corpay, Inc. (CPAY - Free Report) has an Earnings ESP of +0.06% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $4.51 per share, indicating an increase of 7.6% from the year-ago reported figure.
CPAY’s earnings beat estimates in two of the last four quarters, missed in one and matched estimates in the other.
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Will Coinbase (COIN) Gain From Improved Trading in Q2 Earnings?
Coinbase Global (COIN - Free Report) is set to report second-quarter 2024 results on Aug 1, after market close. This company delivered an earnings surprise in each of the last four reported quarters.
Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.
Increased crypto asset volatility and improved crypto asset prices are likely to have aided trading volumes in the second quarter. Crypto trading remains a major revenue driver of COIN. It has been prioritizing crypto utility by investing in infrastructure and foundational platforms like Base. Notably, Base has considerably lowered transaction fees and increased transaction speed.
Increased market share in the U.S. spot and derivatives markets and an expanded product portfolio and international market presence are likely to have driven trading volumes.
The Zacks Consensus Estimate for total trading volume is pegged at 266.6 million, indicating an improvement of nearly threefold from the year-ago reported number. The consensus estimate for total volume - Consumer is pegged at 43.6 million, suggesting a 211% increase from the year-ago reported number. The consensus mark for total volume - Institution is pegged at 185.5 million, indicating a surge of 137% from the year-ago reported number.
Transaction revenues are likely to have benefited from higher blended average fees for Consumer and Institutional.
While the blended average fee for Consumers is expected to have gained from a prudent mix of simple and advanced trading volume, growth in Coinbase Prime volume is expected to have led to a higher blended average fee rate at Institutional. The Zacks Consensus Estimate for transaction revenues is pegged at $714 million, indicating an increase of 140% from the year-ago reported figure.
The Zacks Consensus Estimate for transaction revenues - Consumer is pegged at $695 million, suggesting an increase of 124% from the year-ago reported number. The consensus estimate for transaction revenues - Institutional is pegged at $55 million, implying an upside of 221.6% from the year-ago reported number
What Our Quantitative Model Predicts
Our proven model does not conclusively predict 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. But that is not the case here.
Earnings ESP: Coinbase’s Earnings ESP is -20.43%. 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 has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Affirm Holdings (AFRM - Free Report) has an Earnings ESP of +19.64% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at a loss of 45 cents per share, indicating an improvement of 34.8% from the year-ago reported figure.
AFRM’s earnings beat estimates in two of the last four quarters and missed in the remaining two.
Shift4 Payments (FOUR - Free Report) has an Earnings ESP of +0.47% and carries a Zacks Rank of 2 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at 91 cents, indicating a surge of 23% from the year-ago reported figure.
FOUR’s earnings beat estimates in two of the last four quarters and missed in the remaining two.
Corpay, Inc. (CPAY - Free Report) has an Earnings ESP of +0.06% and a Zacks Rank of 3 at present. The Zacks Consensus Estimate for second-quarter 2024 earnings is pegged at $4.51 per share, indicating an increase of 7.6% from the year-ago reported figure.
CPAY’s earnings beat estimates in two of the last four quarters, missed in one and matched estimates in the other.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.