Riot Platforms, Inc. Surprises with Earnings Beat Amid Revenue Struggles
Riot Platforms, Inc. (RIOT) has reported quarterly earnings of $0.54 per share, significantly exceeding the Zacks Consensus Estimate of a loss of $0.22. This marks a recovery from a loss of $0.25 per share in the same quarter last year, adjusted for non-recurring items.
The quarterly results represent an impressive earnings surprise of 345.45%. In the previous quarter, expectations were set for a loss of $0.16 per share, yet the company reported a loss of $0.32, indicating a -100% surprise.
Over the past four quarters, Riot has outperformed consensus EPS estimates three times.
Revenue Performance Falls Short
Riot Platforms, Inc. operates in the Zacks Technology Services industry and generated revenues of $84.79 million for the third quarter ended September 2024. This figure fell short of the Zacks Consensus Estimate by 5.97%, although it reflects an increase from revenues of $51.89 million a year prior. Over the last year, the company has struggled to meet revenue expectations.
The immediate price movement of the stock will largely depend on the insights provided by management during the upcoming earnings call.
So far this year, Riot Platforms, Inc. shares have decreased by approximately 29.7%, while the S&P 500 index has risen by 22.3%.
Looking Ahead: What’s Next for Riot Platforms, Inc.
Despite recent setbacks, investors are curious about the future of Riot Platforms, Inc. What lies ahead for the stock?
While answers are not straightforward, analyzing the company’s earnings outlook can provide some insight. This entails current consensus earnings expectations for the upcoming quarters and recent changes to those expectations.
Research indicates a strong link between stock movements and trends in earnings estimate revisions. Investors can monitor these revisions or use tools like the Zacks Rank, which historically has a solid track record related to earnings revisions.
Before the latest earnings release, the revision trend for Riot was mixed. After the recent report, the stock holds a Zacks Rank of #3 (Hold), suggesting it is expected to perform in line with the market moving forward. The upcoming consensus EPS estimate stands at -$0.18, with anticipated revenues of $132.77 million for the coming quarter, and $0.07 on $372.42 million for the current fiscal year.
It’s also essential to recognize that industry trends can greatly affect stock performance. Currently, the Technology Services sector ranks in the top 22% among over 250 Zacks industries. Historically, the top half of Zacks-ranked industries has outperformed the bottom half by more than double.
Another company in the same industry, ADTRAN Holdings (ADTN), has not yet released its results for the quarter ending September 2024. Their report is scheduled for November 6.
ADTRAN is projected to report a quarterly loss of $0.02 per share, an improvement of 85.7% compared to last year. The revenue estimate for ADTRAN is $228.8 million, a decline of 16% from the same quarter last year.
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Riot Platforms, Inc. (RIOT): Free Stock Analysis Report
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The views and opinions expressed herein are solely those of the author and do not reflect those of Nasdaq, Inc.
