Blockchain infrastructure company Coinbase (NASDAQ:COIN) will be announcing earnings results this Thursday after the bell. Here’s what to look for.
Coinbase missed analysts’ revenue expectations last quarter, reporting revenues of $1.78 billion, down 21.6% year on year. It was a disappointing quarter for the company, with a significant miss of analysts’ revenue and EBITDA estimates.
Is Coinbase a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Coinbase’s revenue to decline 25.7% year on year, a reversal from the 24.2% increase it recorded in the same quarter last year.
Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing in majority downward revisions over the last 30 days. Coinbase has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Coinbase’s peers in the consumer internet segment, some have already reported their Q1 results, giving us a hint as to what we can expect. LendingTree delivered year-on-year revenue growth of 36.5%, beating analysts’ expectations by 1.9%, and Robinhood reported revenues up 15.1%, falling short of estimates by 5.3%. LendingTree traded down 21.7% following the results while Robinhood was also down 13.2%.
Read our full analysis of LendingTree’s results here and Robinhood’s results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 11.8% on average over the last month. Coinbase is up 12.6% during the same time and is heading into earnings with an average analyst price target of $236.57 (compared to the current share price of $196.87).
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