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Coinbase Global’s (NASDAQ:COIN) upcoming fourth-quarter results, set to be released after the market closes on Thursday, are generating significant buzz. The anticipated report is poised to reflect notable progress in the wake of a powerful crypto market upswing, potentially marking yet another triumph for the crypto exchange.
The last quarter of 2023 saw an impressive surge in the price of bitcoin (BTC-USD), with a remarkable 50% increase preceding the regulatory green light for the first U.S. spot bitcoin exchange-traded funds on Jan. 10. In light of these developments, investors are eagerly eyeing the potential for a quarter-over-quarter rise in trading volume at Coinbase (COIN).
Analysts foresee Coinbase surpassing previous performances, with expectations of a GAAP EPS of $0.01, a significant improvement from the -$0.01 in the previous quarter. Revenue is projected to reach $818.4M, a marked increase from $674.1M in Q3.
If these projections materialize, it would signify Coinbase’s (COIN) first quarterly profit since Q4 2021, just before the crypto market faced a major downturn due to a series of bankruptcies and meltdowns.
Despite previous challenges, COIN has demonstrated resilience by surpassing earnings estimates in the last three quarters, with revenue also exceeding expectations for four consecutive quarters. Notably, the last three months have seen 12 upward revisions for both EPS and revenue estimates.
While the sell-side analysts are generally optimistic about Q4, SA analyst Dair Sansyzbayev remains cautious, highlighting that consensus estimates for Coinbase’s (COIN) performance still fall short of the stellar Q4 2021. Outstanding concerns include the topline lagging behind by three times and the adjusted EPS lower by more than ten times.
At the same time, Coinbase (COIN) stock surged 12.6% in Wednesday midafternoon trading as bitcoin (BTC-USD) resumed its multi-day bull run following Tuesday’s CPI-induced setback.
