Coinbase Stock Mirrors Crypto Market Crash Ahead Earnings, What To Expect?

The Coinbase (COIN) stock plunged in the pre-market trading session on Wednesday amid the crypto market crash. The decline comes on the heels of the Coinbase Q1 FY24 earnings scheduled for Thursday, May 2, 2024 after the market closes. Hence, let’s take a look at analyst estimates for the upcoming Coinbase earnings call.

What To Expect From Coinbase Q1 Earnings?

According to Zacks Investment Research analyst estimates, the Coinbase Q1 EPS expectation is pegged at $0.89 per share. It represents a 14.5% plunge from last quarter’s EPS of $1.04. However, netizens questioned the low estimate as Coinbase witnessed a surge in volume in the first quarter owing to the crypto bull market.

However, this EPS estimate also represents a whopping increase of 493.33% from previous year’s figure of $0.15 per share. Meanwhile, Zacks analysts expect Coinbase to clock a revenue of $1.20 billion, indicating a gain of 55.50% year-over-year.

Moreover, these analysts anticipate the crypto exchange to beat their EPS expectation by over 36%. This indicates a potential surge of EPS to approximately $1.22 per share. Furthermore, Wall Street analysts have adjusted Coinbase’s Q1 GAAP EPS estimates for 2024 from $1.86 to $2.41, indicating a more optimistic outlook for the cryptocurrency exchange platform.

However, despite this upward revision, analysts maintain the belief that Q1 marked the peak profitability for the company this year. In addition, they expect the Coinbase earnings to weaken as the year passes by. Whilst, Wall Street analysts expect that revenue growth is set to maintain its upward trajectory, with a forecasted 54% surge year-over-year (YoY) in 2024.

Whilst, Coinbase’s EBITDA (earnings before interest, taxes, depreciation, and amortization) is estimated to witness an impressive 120% year-over-year increase in 2024. However, it might encounter a 10% decline in the coming year.

Moreover, a deeper analysis reveals a comprehensive outlook when examining net income growth projections. Wall Street analysts foresee an exceptional 300% year-over-year upswing in 2024 for Coinbase’s net income. On the contrary, a 36% downturn is forecasted for 2025, potentially signaling the conclusion of the prevailing bull market.

Also Read: Breaking: Coinbase Rolls out Bitcoin Lightning Network

COIN Stock Dips

The Coinbase stock slipped below the $200 mark in the pre-market session today. At press time, the COIN stock was down by 2.54% to $198.76 on Wednesday, May 1. Earlier, the stock lost a massive 6.52% and closed at $203.93 with a market cap of $50.05 billion on Tuesday.

However, the Zacks Investment Research analysts are bullish on the Coinbase stock. The firm maintains a “Strong Buy” rating for the COIN stock, boosting investor confidence. Nonetheless, the Coinbase stock has been underperforming in the past month as it plunged nearly 20% in April, possibly due to the continued crypto market downturn.

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