Copyright Benzinga
Cryptocurrency exchange company Coinbase Global Inc (NASDAQ:COIN) could highlight strong trading volume, as Bitcoin (CRYPTO: BTC) hit new highs in the third quarter, when the company reports quarterly results Thursday after market close. • COIN is facing resistance from sellers. Get the complete analysis here. Here are the earnings estimates, what analysts are saying and key items to watch. Earnings Estimates: Analysts expect Coinbase to report third-quarter revenue of $1.79 billion, up from $1.21 billion in last year's third quarter, according to data from Benzinga Pro. The company missed analyst estimates for revenue in two straight quarters, but beat estimates in seven of the past 10 quarters overall. Analysts expect Coinbase to report third-quarter earnings per share of $1.13, up from 73 cents per share in last year's third quarter. The company beat analyst estimates for earnings per share in two straight quarters, while beating estimates in eight of the past 10 quarters overall. Read Also: Retail Investors’ Top Stocks With Earnings This Week: SoFi, Apple, Meta And More What Analysts Are Saying: Several analysts have lowered their price targets on Coinbase stock ahead of third-quarter financial results. Rosenblatt analyst Chris Brendler reiterated a Buy rating on Coinbase, while lowering the price target from $470 to $450. "We're lower on Consumer trading volumes, partially offset by higher stablecoin and staking revenues," Brendler said in a new investor note. The analyst said the third-quarter results could be less important than guidance, which could include estimates for the Derebit acquisition. "While estimates do not yet include this new option trading business and integration may take some time, we're excited for details on this compelling strategic fit." Brendler said Coinbase has macro tailwinds with product expansion. "We continue to view COIN as a compelling opportunity and core large-cap crypto holding." The analyst estimates trading volumes will be up 23% quarter-over-quarter in the third quarter, with strong demand in July but weaker results later in the quarter. Brendler sees trading activity becoming less important as the company becomes more diversified with derivatives, tokenized real-world assets and prediction markets. Coinbase could bridge the gap between crypto and traditional finance, BTIG analyst Andrew Harte said in a recent note. BTIG initiated coverage on Coinbase with a Buy rating and $410 price target. The analyst said Coinbase can benefit from the overall cryptocurrency adoption with its secure trading platform that is trusted in the industry along with being a key liaison between traditional finance and decentralized finance. BTIG highlighted the development of the Base App, stablecoin adoption and rapid scaling of the derivatives business as three major growth areas for Coinbase. The analyst said Coinbase has diversified its revenue in recent quarters. Key Items to Watch: Coinbase's report covers the months of July, August and September. Bitcoin hit an all-time high of over $123,000 in August and likely saw strong trading volume during the quarter. Analysts are mixed on how high the trading volume was in the quarter and the results could play a key role in how investors trade the stock after. Bitcoin later hit new highs in October, which could be highlighted in forward guidance. Coinbase CEO Brian Armstrong has been pushing for cryptocurrency regulation in recent months, meeting with Democrats and Republicans in Congress. "I sat down with Senate Democrats and Republicans who want to get this done — we're 90% there," Armstrong said in a tweet. Armstrong said he's bullish on a bill being passed by the end of 2025 for crypto regulation. Coinbase closed its acquisition of Derebit in the third quarter, which could mean the company becomes part of guidance. A report from the Wall Street Journal said Coinbase was also acquiring blockchain fundraising platform Echo for $375 million. Acquisitions could play into the company's guidance and forward outlook. Recent deals have helped the company diversify its offerings for customers and the company's financials. The report from Coinbase comes after a second quarter that saw transaction revenue, subscription and services revenue and trading volume all down on a quarter-over-quarter basis. The company will be hoping to show a rebound in multiple areas from the third quarter. COIN Price Action: Coinbase stock is down 2.22% to $347.32 on Wednesday versus a 52-week trading range of $142.58 to $444.65. Coinbase shares are up 36% year-to-date in 2025. Read Next: Coinbase CEO Brian Armstrong Says He Feels Very Bullish As ‘Clear Rules Are Coming’ For Crypto In The US Photo: Mehaniq On Shutterstock
