Coinbase Q3 Earnings Preview: Revenue Streak On The Line As Bitcoin Nears All-Time Highs

Cryptocurrency platform company Coinbase Global COIN could have perfect timing with its third-quarter financial results coming as leading cryptocurrency Bitcoin BTC/USD trades near all-time highs.

Here's what analysts and investors are watching when the company reports Wednesday after market close.

Earnings Estimates: Analysts expect Coinbase to report third-quarter revenue of $1.25 billion, up from $674.2 million in last year's third quarter, according to data from Benzinga Pro.

The company has beaten revenue estimates from analysts in seven straight quarters.

Analysts expect Coinbase to report third-quarter earnings per share of 43 cents. That’s up from a loss of 1 cent per share in last year's third quarter. The company has beaten earnings per share estimates from analysts in six straight quarters.

Coinbase has reported positive earnings per share in three straight quarters. It will be looking to extend that streak and beat estimates from analysts.

Read Also: MSTR Vs. RIOT Vs. COIN – Which Crypto Stock Stands Out Ahead Of Q3 Earnings?

What Analysts Are Saying: Third-quarter estimates could be "safe" for Coinbase, H.C. Wainwright analyst Mike Colonnese said in a new investor note Tuesday.

The analyst reiterated a Buy rating on Coinbase with a $295 price target.

"Based on our analysis of key intra-quarter data points such as crypto trading volumes, BTC and ETH price performance, and growth in USDC's market cap, we believe consensus 3Q24 revenue and earnings estimates are well-calibrated," Colonnese said.

The analyst doesn't expect shares to significantly move after the quarterly results.

"We remain bullish on the stock over the next 12 months, based on where we are in the crypto industry's four-year price cycle and Coinbase's dominant position in the digital assets' ecosystem."

Colonnese highlights crypto investors often seeing the best returns during the one-year period six months after a Bitcoin halving event, which is where things stand today.

Here are other recent analyst ratings on Coinbase and their price targets:

• B. Riley: Initiated with Neutral rating, $185 price target
• JMP Securities: Reiterated Market Outperform rating with $320 price target
• Barclays: Maintained Equal-weight rating, raised price target from $169 to $175

Key Items to Watch: Coinbase's earnings report comes with Bitcoin trading near all-time highs Tuesday. The increased price action could be helpful if Coinbase provides an early look at fourth-quarter results and trends.

Transaction revenue and subscription revenue splits are another area to monitor. Coinbase has grown its subscription and services revenue to help diversify its revenue streams.

Altcoins took off in recent quarters. Investors and the cryptocurrency community may be eager to monitor the quarterly split of transaction revenue from Bitcoin, Ethereum ETH/USD and other coins.

As a company helping institutions with Bitcoin, Coinbase's report could also highlight how Bitcoin ETF demand is doing and if the company is seeing increased interest from companies acquiring Bitcoin for its balance sheets.

Price Action: Coinbase stock closed Tuesday, up 1.65% at $219.66. The 52-week trading range spans $71.88 to $283.48. Coinbase stock is up 40% year-to-date in 2024.

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