Coinbase Earnings: Wall Street Analysts Expect 31% EPS Decline QoQ

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As a researcher with extensive experience in analyzing financial reports and trends within the technology sector, I am closely monitoring Coinbase Global, Inc.’s (COIN) upcoming earnings report on August 1, 2024. Based on historical reporting patterns, this date is subject to change, but it provides an important benchmark for investors.

Based on previous trends, it’s expected that Coinbase Global, Inc. (COIN) will unveil its earnings report on August 1, 2024. However, this date is subject to change once the company officially announces the actual release date. In the lead-up to the earnings report, financial experts anticipate notable shifts in Coinbase’s financial metrics.

What To Expect From Coinbase Q2 Earnings?

As a researcher, I’ve come across some intriguing earnings data for Coinbase. According to Zacks Investment Research, the average estimate from seven analysts predicts an EPS of $1.13 for the upcoming quarter. This figure represents a remarkable year-over-year increase of 369.05%, moving from a negative EPS of -$0.42 in the same period last year. However, this quarterly growth is outpaced by a projected 31% decline compared to the previous quarter’s reported $1.65 EPS in the first quarter of fiscal year 2024.

The decrease in crypto market prices is mainly due to lower trading volumes and a significant drop in Bitcoin‘s value, which fell from a peak of $72,000 in April to around $59,000 currently. This decline can be attributed to the German government selling off Bitcoin holdings and Mt. Gox repayments. However, Bitcoin has recently bounced back above $59,000, breaking free from its downward trend.

Alongside Zacks’ predictions, Yahoo Finance provides a pessimistic perspective. According to the agreement of 17 industry experts, the predicted earnings per share for the quarter amount to $1.06. This estimate suggests a significant decrease of 36% compared to the previous quarter. However, there is optimism regarding the annual growth, as analysts forecast a remarkable 352% increase in Coinbase’s Q2 earnings per share relative to the same period last year.

As a crypto investor, I’m excited to share that Coinbase surpassed earnings per share (EPS) expectations by an impressive 58.65% during the last quarter. However, according to Zacks Research, there’s a possibility that the company might not meet the current EPS estimate, with a projected miss of 15.16%. This potential shortfall underscores the challenges Coinbase faces in managing its operations amidst the volatile and unpredictable nature of the cryptocurrency market.

Regarding the financial side, analyst predictions suggest that Coinbase will earn approximately $1.47 billion in revenue for the given quarter. This represents a significant yearly gain of 107.83%. This growth underscores the company’s adaptability to broaden its revenue foundation amid market instability. However, it also implies a decrease of 7% when compared to the previous quarter.

Overview Of Q1 Earnings Report

As an analyst looking back at Q1 2024, I can say that Coinbase’s earnings report took me by surprise with its exceptional results. The company outperformed my expectations, as well as those of other analysts, due to the remarkable increase in crypto asset values and the resulting favorable market sentiment. These factors significantly contributed to Coinbase’s impressive revenue growth. To be more specific, the company reported revenues of $1.58 billion during this quarter, which was more than double the projected $1.32 billion.

Furthermore, the company experienced significant growth in transaction revenues exceeding $1 billion in the recent quarter. This surge was fueled by heightened engagement from both individual and institutional investors. Institutional investors, in particular, significantly increased their trading volumes, leading to an overall uptick in activity. Additionally, net income amounted to $1.17 billion or $4.40 per share during this period, representing a remarkable turnaround from the previous year’s Q1 loss of $79 million, which was recorded amidst market instability.

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2024-07-10 17:34