Coinbase Global, Inc. Sees Significant Revenue And Earnings Growth Amid Market Fluctuations
$COIN
Coinbase Global, Inc. (NASDAQ: COIN) has recently garnered significant attention as one of the most searched stocks on Zacks.com. This surge in interest comes amid notable financial performance and market activity. Over the past month, the company has seen its shares increase by 8.2%, outperforming the S&P 500’s 4.9% rise during the same period.
Additionally, the Financial Transaction Services industry, to which Coinbase Global belongs, has experienced a growth of 1.8%. A key driver of the heightened interest in Coinbase Global is the substantial revisions in earnings estimates. For the current quarter, the company is expected to post earnings of $0.34 per share, marking a dramatic increase of 3,500% from the same quarter last year.
Although there has been a slight decrease of 1.5% over the last 30 days, the Zacks Consensus Estimate for the current fiscal year stands at $5.16 per share, indicating a year-over-year increase of 1,294.6%. Looking ahead, the earnings estimate for the next fiscal year is set at $1.88 per share, reflecting a decrease of 63.7% from the expected earnings for this year, with the estimate revised down by 6.9% over the past month.
The consensus sales estimate for the current quarter is $1.25 billion, representing an 84.8% increase. For the current and next fiscal years, revenue is expected to reach $5.64 billion and $5.09 billion, respectively, indicating changes of +81.4% and -9.7%. In its last reported quarter, Coinbase Global announced revenues of $1.45 billion, which is a 104.8% increase from the year prior.
The earnings per share (EPS) for the same period were $1.07, compared to -$0.42 a year ago. These figures slightly exceeded the Zacks Consensus Estimate, with reported revenues representing a surprise of +1.19% and EPS aligning exactly with expectations. Over the last four quarters, the company has consistently surpassed consensus EPS estimates three times and has topped consensus revenue estimates in each instance.
However, valuation remains a critical aspect of Coinbase Global’s financial narrative. Currently, the company is trading at a premium compared to its peers, receiving a Zacks Value Style Score of D. This score suggests that the stock might be viewed as overvalued relative to the market, which is an important consideration for the company’s positioning and future performance.
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