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Coinbase Global, Inc. (COIN) Reports Third Quarter Loss, Delayed Revenue Estimates

Coinbase Global, Inc. (COIN) reported a quarterly loss of $2.43 per share versus the Zacks Consensus Estimate of a loss of $2.23. For comparison, earnings per share were $1.62 a year earlier. These numbers have been adjusted for one-off items.

This quarterly report showed an earnings surprise of -8.97%. A quarter ago, it was expected that this company would post a loss of $3.04 per share when it actually produced a loss of $4.95, delivering a surprise of -62.83%.

Over the last four quarters, the company has surpassed consensus EPS estimates only once.

Coinbase Global, Inc., which belongs to the Zacks Securities and Exchanges industry, posted revenues of $590.34 million for the quarter ended September 2022, missing the Zacks Consensus Estimate by 8.16%. For comparison, year-ago revenues were $1.31 billion. Over the last four quarters, the company has topped consensus revenue estimates only once.

The sustainability of the immediate share price movement based on the recently-released numbers and future earnings expectations will largely depend on management’s commentary on the earnings call.

Coinbase Global, Inc. Shares have lost approximately 75.9% year-to-date compared to the S&P 500 Index’s decline of -21.1%.

What’s next for Coinbase Global, Inc.

Although this year Coinbase Global, Inc. has so far underperformed the market, the question that arises for investors is: what’s next for the stock?

There are no simple answers to this key question, but one reliable measure that can help investors address this issue is the company’s earnings prospects. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of the earnings release, the estimate revision trend for Coinbase Global, Inc. is mixed. While the magnitude and direction of estimate revisions may change following the company’s just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) stock. Therefore, the company’s stock is expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the next quarters and the current fiscal year change in the coming days. The current consensus EPS estimate is -$1.93 on revenue of $725.32M for the coming quarter and -$11.15 on revenue of $3.34B for the current fiscal year.

Investors should be aware that the outlook for the industry may also have a significant impact on share prices. In terms of the Zacks Industry Rank, Securities and Stocks are currently in the top 28% of over 250 Zacks industries. Our research shows that the top 50% of Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

OTC Markets Group Inc. (OTCM), another company in the same industry, is yet to release earnings for the quarter ended September 2022.

The company is expected to post quarterly earnings of $0.60 per share in its upcoming report, which would represent a year-over-year change of -3.2%. The consensus EPS estimate for the quarter has not changed over the last 30 days.

OTC Markets Group Inc. revenues are expected to be will amount to USD 25.57 million, which means an increase of 1.4% compared to the same quarter last year.

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