Cryptocurrency platform company Coinbase Global COIN may announce its third-quarter results at the perfect time, with the leading cryptocurrency Bitcoin BTC/USD trading near all-time highs.
Here’s what analysts and investors are looking for as the company makes its announcement after the market closes on Wednesday.
Revenue Forecast: Analysts expect Coinbase to report third-quarter revenue of $1.25 billion, up from $674.2 million in the third quarter of last year, according to data from Benzinga Pro.
The company has exceeded analyst revenue estimates for seven consecutive quarters.
Analysts expect Coinbase to report third-quarter earnings of 43 cents per share. This was up from a loss of 1 cent per share in the third quarter of last year. The company has exceeded analysts’ earnings per share estimates for six consecutive quarters.
Coinbase reported its third consecutive quarter of positive earnings per share. The company aims to extend this record and exceed analysts’ expectations.
Also Read: MSTR vs. Riot vs. COIN – Which Crypto Stocks Outperformed Q3 Revenue?
Analyst opinion: Third-quarter forecast could be ‘safe’ for Coinbase, HC Wainwright analyst Mike Colonese said in a new investor note on Tuesday .
The analyst reiterated his “buy” rating on Coinbase, with a price target of $295.
“Based on analysis of key intra-quarter data points such as crypto trading volume, BTC and ETH price performance, and USDC market cap growth, our consensus revenue and profit forecast for Q3 2024 is We think it’s properly calibrated,” Colonese said.
The analyst does not expect the stock price to move significantly after the quarterly results.
“Based on our position in the cryptocurrency industry’s four-year price cycle and Coinbase’s dominant position in the digital asset ecosystem, we remain bullish on the stock over the next 12 months. .”
Colonese emphasized that crypto investors often see their best returns in the year six months after the Bitcoin halving event, and that is the current situation.
Here are other recent analyst ratings for Coinbase and their price targets:
B. Riley: Start with Neutral rating, $185 price target JMP Securities: Reiterate Market Outperform rating, $320 price target Barclays: Maintain Equal Weight rating, raise price target from $169 to $175
Key items to note: Coinbase’s earnings report includes Bitcoin trading near all-time highs on Tuesday. Increased price volatility could help if Coinbase provides Q4 results and trends early.
The split between transactional and subscription revenue is also an area to monitor. Coinbase has been expanding its subscription and services revenue to help diversify its revenue streams.
Altcoins have gained popularity in the last few quarters. Investors and the cryptocurrency community may be keen to monitor the quarterly split of trading revenue from Bitcoin, Ethereum ETH/USD, and other coins.
As a company that backs institutions with Bitcoin, Coinbase’s report looks at how demand for Bitcoin ETFs is shaping up and is there growing interest from companies acquiring Bitcoin for their balance sheets. There is also a possibility that it will be highlighted.
Price Action: Coinbase stock closed at $219.66 on Tuesday, up 1.65%. The 52-week trading range is $71.88-$283.48. Coinbase stock is up 40% year-to-date in 2024.
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