Coinbase Analysts Remain Positive Ahead of Q2 Earnings Despite Regulatory Uncertainties Crypto trading platform
Coinbase is poised for better-than-expected, Q2 earnings despite ongoing legal pressure
against the firm and other industry giants, analysts say.
Consensus estimates from the financial data company
FactSet call for revenues to decline to $629 million, down from $773 million in the prior quarter. This is expected to come
on the back of lower trading volume during that same period, projected at $114 million versus $145 million in Q1.
Furthermore, earnings per share are expected
to fall by $0.75, as opposed to $0.34 in the prior quarter. However, in a Tuesday note, British Bank Barclays wrote that it expects “
adjusted EBITDA” (Earnings Before Interest, Taxes, Depreciation, and Amortization) to come
in “well ahead of consensus.”
Last month, the bank’s analysts downgraded
Coinbase’s stock to underweight, expecting various near-term pressures to start taking their toll on the company’s earnings. At the time,
analysts wrote:
“While we continue to believe Coinbase is a likely long-term winner in the broader crypto ecosystem, fundamentals remain challenged, and recent relief from price actions, increasing rates, and cost rationalization likely have little further to run.”
