Coinbase (COIN) Q4 Earnings Preview: Wall Street Analysts Expect a Big Jump in Earnings from the Prior Three Months

The fourth quarter was a good one for crypto and Wall Street analysts expect leading U.S. exchange Coinbase (COIN) to have posted a big jump in earnings

Coinbase (NASDAQ:COIN) stock rose sharply in 2023, tracking gains in the crypto market and ahead of the exchange's fourth quarter earnings report, due out after the closing bell on March 7.

Analysts, on average, expect Coinbase to report a net loss of $2.45 per share on revenue of $1.8 billion, according to data from FactSet. In the prior three months, Coinbase swung to a loss of $0.41 per share, while revenue came in at $1.26 billion.

Coinbase saw strong trading activity in the fourth quarter, with total exchange volume rising to $195.9 billion from $185.3 billion in the third quarter. The $195.9 billion figure would be the strongest quarterly result since the fourth quarter of 2021.

Shares of Coinbase rose 1.4% in premarket trading on Tuesday. The stock is now up about 90% from a year ago.

Coinbase stock recently gained the attention of several Wall Street analysts. Here's a look at what they had to say:

* Citi maintained a buy rating on Coinbase and raised its price target on the stock to $350 from $275. The bank expects Coinbase to report fourth quarter revenue of $1.7 billion, below the $1.8 billion consensus estimate.

* JPMorgan remained neutral on the stock. The firm sees fourth quarter revenue at $1.77 billion, also below the $1.8 billion estimate.

Coinbase is also expected to provide an outlook for 2025, with analysts largely in agreement that this year will be critical for the crypto exchange, given the policy changes and regulatory shifts.

* Citi expects static crypto prices in 2025 and anticipates more normalized volumes, leading to 6% year-over-year transaction revenue growth, compared to consensus estimates of 3% growth. The bank also noted that the stock is likely to remain a 'risk-on' play throughout 2025 and will probably experience volatility in response to macro developments and shifts in market sentiment.

* According to Citi, one key area of focus for Coinbase in 2025 will be to continue diversifying its revenue stream, as 50% of its revenue is still derived from trading fees. The bank's analysts highlighted several growth opportunities for the exchange, including the tokenization of assets, embedded smart contract applications and Web3, potential efficiencies in cross-border and remittance, and using the blockchain as an AI governance tool.