Coinbase Global COIN is slated to report first-quarter 2022 earnings on May 10, after the closing bell. COIN delivered an earnings surprise in two of the four 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’s 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 Retail transaction revenues, net, is pegged at $987 million.
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 $1.5 billion for the first 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. COIN is a market-leading brand, exclusively focused on the cryptoeconomy and thus is expected to have benefited from this tailwind.
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 have been in the low to mid-20s, attributable to higher blockchain reward revenues and operating expenses.
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 +21.29%. This is because the Most Accurate Estimate of $1.70 is pegged higher than the Zacks Consensus Estimate of $1.40. 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 4 (Sell).
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:
ProAssurance PRA has an Earnings ESP of +27.54% and a Zacks Rank #3. The Zacks Consensus Estimate for the first quarter is pegged at 17, indicating an increase of 325% from the year-ago reported figure.
ProAssurance delivered an earnings beat in all the reported quarters of 2021.
Simon Property Group SPG has an Earnings ESP of +1.24% and a Zacks Rank #3. The Zacks Consensus Estimate for the first quarter is pegged at $2.73, indicating an increase of 10.1% from the year-ago reported figure.
Simon Property Group delivered an earnings beat in all the reported quarters of 2021.
Conifer CNFR has an Earnings ESP of +23.08% and a Zacks Rank #3. The Zacks Consensus Estimate for the first quarter is pegged at a loss of 13 cents, narrower than the year-ago reported loss of 72 cents.
Conifer earnings missed estimates in three quarters of 2021 while coming in line with the same once.
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Simon Property Group, Inc. (SPG) : Free Stock Analysis Report
ProAssurance Corporation (PRA) : Free Stock Analysis Report
Conifer Holdings, Inc. (CNFR) : Free Stock Analysis Report
Coinbase Global, Inc. (COIN) : Free Stock Analysis Report