From Nasdaq

May 5, 2025 1:32:00 pm:

Coinbase Global Inc. (COIN) is set to release its first-quarter 2025 results on May 8, with expectations of improved revenue and earnings. The Zacks Consensus Estimate for COIN’s Q1 revenues is $2.2 million, reflecting a 33.4% increase from the previous year. Earnings estimate is $2.06 per share, indicating a 23.6% YoY increase.

COIN has a history of beating earnings estimates, with an average surprise of 46.15% in the past four quarters. However, the Zacks model does not predict an earnings beat this time due to the negative Earnings ESP of -5.23% and a Zacks Rank #3.

Coinbase’s Q1 performance is expected to benefit from increased trading volume, driven by higher volatility. Revenue streams like trading fees and Stablecoins are likely to have seen growth. Transaction revenues are estimated at $1325 million, up 23% YoY.

The stock price of COIN underperformed in Q1 2025, trading at a P/E ratio of 22.47, higher than the industry average of 15.29. Other crypto-oriented stocks like Robinhood Markets (HOOD) and Interactive Brokers Group (IBKR) are also trading at multiples above industry average.

Investors may consider holding off on investing in COIN due to its premium valuation and low return on equity. However, in a pro-crypto environment, Coinbase is positioned to benefit from market growth, increased adoption, and cost-control initiatives. The company’s focus on stability in revenues and growth in international markets are key factors to watch.

Read more at Nasdaq: Should You Add COIN Stock to Your Portfolio Ahead of Q1 Earnings?