COIN to Report Q1 Earnings: Will Higher Trading Volume Be a Catalyst?

Coinbase Global COIN is set to report first-quarter 2025 results on May 8, after market close. This company delivered an earnings surprise in each of the last four reported quarters. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Let’s discuss the factors that are likely to be reflected in the upcoming quarterly results.

Increased asset volatility and improved crypto asset prices are likely to have aided trading volumes in the first quarter. Crypto trading remains a major revenue driver of COIN. It has been prioritizing crypto utility by investing in infrastructure and foundational platforms.

Increased market share in the U.S. spot and derivatives markets and an expanded product portfolio and international market presence are likely to have driven trading volumes.

The Zacks Consensus Estimate for total trading volume is pegged at 404 million, indicating an improvement of 28.5% from the year-ago reported number. The consensus estimate for total volume - Consumer is pegged at 83 million, suggesting a 48.2% increase from the year-ago reported number. The consensus mark for total volume - Institution is pegged at 321 million, indicating a surge of 25.4% from the year-ago reported number.

Transaction revenues are likely to have benefited from higher fees for Consumer and Institutional.  The Zacks Consensus Estimate for transaction revenues is pegged at $1.325 billion, indicating an increase of 23% from the year-ago reported figure.

The Zacks Consensus Estimate for transaction revenues - Consumer is pegged at $1.2 billion. The consensus estimate for transaction revenues - Institutional is pegged at $127 million, implying an upside of 49.4% from the year-ago reported number.

Revenues are likely to have benefited form market share gains across U.S. spot and derivatives trading products as well as higher units across custody, staking and USDC assets and Coinbase One subscriber growth.

What Our Quantitative Model Predicts

Our proven model does not conclusively predict an earnings beat for Coinbase this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.

Earnings ESP: Coinbase’s Earnings ESP is -5.23%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Coinbase currently has a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Root ROOT has an Earnings ESP of +25.84% and a Zacks Rank of 1 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at 45 cents per share, indicating an increase of 207.1% from the year-ago reported figure. 

ROOT’s earnings beat estimates in each of the last four quarters.

Primerica PRI has an Earnings ESP of +0.46% and carries a Zacks Rank of 3 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $4.77, indicating a surge of 22% from the year-ago reported figure.

PRI’s earnings beat estimates in three of the last four quarters, while missing in one.

EPR Properties EPR has an Earnings ESP of +1.18% and a Zacks Rank of 2 at present. The Zacks Consensus Estimate for first-quarter 2025 earnings is pegged at $1.19 per share, indicating an increase of 6.3% from the year-ago reported figure.

EPR’s earnings beat estimates in two of the last four quarters while missing in the other two.

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This article originally published on Zacks Investment Research (zacks.com).

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