Coinbase Global (COIN) is on the verge of unveiling its fourth-quarter 2023 earnings on Feb 15, following the closing bell. The company has managed to surprise with its earnings outcomes for all the quarters throughout the year. Let’s dive into the potential driving forces likely to shape the upcoming financial results.
Factors at Play in Q4
The fourth quarter’s trading volumes are anticipated to be affected by the persistent reduction in crypto asset volatility, which serves as the primary trading business catalyst. Projections suggest that the Zacks Consensus Estimate for total trading volume is set at 116 million, reflecting a 20% dip from the figure reported a year ago. Meanwhile, the anticipated reduction stands at 14.5% and 16.8% for total volume-consumer and total volume-institution, respectively.
Despite a decline in trading volumes, transaction revenues are expected to climb owing to the higher blended average fee for Consumer. The judicious blend of simple and advanced trading volume likely bolstered the blended average fee. Transaction revenues as per the Zacks Consensus Estimate are envisaged to reach $344 million, reflecting a 6.8% increase from the figure reported in the year-ago period.
Quantitative Predictions
Our analysis model predicts a looming earnings beat for Coinbase. This is primarily due to the presence of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold), which significantly enhances the likelihood of an earnings beat.
The Earnings ESP for Coinbase stands at an impressive +108.33%, offering a glimpse into the potential positive future financial outcome.
Comparison with Other Stocks
Other potential victors from the Finance industry worth keeping an eye on include Arch Capital Group (ACGL), Energy Transfer (ET), and Kraft Heinz Company (KHC). Each of these players boasts a unique set of attributes that could potentially lead to an earnings beat in the current reporting cycle.
As we await the earnings declarations, all eyes are now set on Coinbase’s performance, poised for scrutiny and expectation.
