From Nasdaq

February 11, 2025 12:59:00 PM:

Coinbase Global Inc. (COIN) is set to report its fourth-quarter 2024 results on February 13, with an expected 67.2% revenue growth to $1.6 billion but a 16.4% decline in earnings to 87 cents per share. The company has a history of beating earnings estimates, with an average surprise of 341.36%.

The Zacks model predicts an earnings beat for Coinbase this quarter due to a positive Earnings ESP of +114.12% and a Zacks Rank of 1, 2, or 3. The company’s fourth-quarter performance is expected to benefit from increased trading volume, a favorable crypto environment, and revenue growth from trading fees and Stablecoins.

Coinbase’s stock has outperformed the industry and sector in 2024 but is currently trading at a higher price-to-earnings multiple of 76.66. Despite this, the company is still cheaper compared to industry peers like Virtu Financial (VIRT) and Fiserv Inc. (FI). Investors can expect growth in the long run but may want to wait for a better entry point due to the premium valuation and weak return on equity.

In conclusion, Coinbase’s focus on accelerating growth, expanding market share, and improving trading experience in the crypto market positions it well for the long term. The company’s efforts in innovation and cost control initiatives should drive performance, but new investors may want to wait for a better entry point given the premium valuation and weaker return on equity.

Read more at Nasdaq: Coinbase Set to Report Q4 Earnings: Time to Buy the Stock?