Upcoming Q3 Earnings Insights for Coinbase: Can Revenue Momentum Continue as Bitcoin Approaches Record Peaks? – Coinbase Global Inc. (NASDAQ: COIN)

The digital currency firm Coinbase Global
COIN
is set to announce their Q3 financial figures, coinciding with Bitcoin‘s
BTC/USD
peak trading levels, as seen in recent market activity.

Here is the focus of attention for stakeholders anticipating the report set for release Wednesday
after the closing bell.

Revenue Forecast: According to
Benzinga Pro data,
analysts project Coinbase’s third-quarter revenue to be $1.25 billion, a substantial increase from $674.2 million the previous year.

The enterprise has a history of surpassing revenue projections made by analysts for seven consecutive quarters.

There is an anticipation of earnings per share to be 43 cents for the third quarter, compared to the previous year’s loss of 1 cent per share. Notably, Coinbase has outdone earnings per share estimates for six quarters in a row.

Having reported rising earnings per share across the past three quarters, Coinbase aims to continue this positive trend against current projections.

Additional Reading:
Comparing MSTR, RIOT, and COIN – Which Crypto Stock is Poised for Q3 Success?

Expert Insights: According to H.C. Wainwright analyst Mike Colonnese, Coinbase’s Q3 projections appear to be conservative. He upheld a Buy recommendation with a $295 target price.

Colonnese suggests the consensus on Q3 revenue and earnings are well-adjusted, considering multiple factors such as crypto trading volumes and the valuation of Bitcoin and Ethereum.

Even with the release of Q3 results, significant movement in stock prices isn’t anticipated by the analyst.

“With a bullish view due to the ongoing crypto industry price cycle and Coinbase’s central role in the digital asset space, we see potential for stock gains over the next year,” Colonnese added.

Colonnese highlighted the trend of high returns for crypto investors approximately half a year following a Bitcoin halving event, which is the current phase of the cycle.

Explore more recent
Coinbase analyst ratings
and their respective price objectives:

• B. Riley: Initiated with a Neutral rating and $185 price target
• JMP Securities: Reaffirmed a Market Outperform rating with a $320 price target
• Barclays: Upheld an Equal-weight rating, increasing the price target from $169 to $175

Watchlist Highlights: The upcoming earnings announcement coincides with Bitcoin nearly reaching record-high values. This could bode well for Coinbase, especially if preliminary Q4 insights are revealed.

Key metrics to observe include the breakdown of transaction and subscription revenue. Coinbase has been expanding its services revenue stream, reducing reliance on transaction fees alone.

With a surge in alternative digital currencies, there is a keen interest in the revenue breakdown from Bitcoin, Ethereum
ETH/USD, and other cryptocurrencies.

The report could also cast light on institutional engagement with Bitcoin, demand for Bitcoin ETFs, and whether companies are increasingly adding Bitcoin to their balance sheets.

Market Movements: On Tuesday, Coinbase shares saw a 1.65% rise, closing at $219.66. The stock has navigated between $71.88 and $283.48 over the past year and has climbed 40% since the beginning of 2024.

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