Earnings Previews: Coinbase, FuboTV, Unity Software and More

We are beginning to see a decline in the number of June-quarter earnings reports. There are still plenty to sift through, but nothing like the numbers we have seen over the past several weeks. Last week’s total of around 1,600 reports drops to around 1,200 this week and plunges to about 200 or so next week.

Monday morning’s results were again heavily skewed to upside surprises, on both profits and revenues. COVID-19 vaccine developer BioNTech beat earnings expectations by nearly 43% and revenue expectations by 62%.

We already have posted our previews of five stocks reporting results after markets close today or before the opening bell on Tuesday, including meme stock AMC Entertainment and some Cathie Wood picks.

Here is a preview of five more companies, these scheduled to release results after markets close Tuesday afternoon or before they open on Wednesday.

Coinbase

Since coming public in mid-April, shares of cryptocurrency platform Coinbase Global Inc. (NASDAQ: COIN) have dropped by about 21%. As governments and central banks around the world try to figure out how to regulate cryptocurrencies, investors have been cautious because Coinbase can be seen as a way to get exposure to crypto without having to own the various coins.

Monday’s sharp jump in Bitcoin (more than 4%) boosted Coinbase shares by more than 5%. Furthermore, Cathie Wood’s ARK Invest holds a combined 6.04 million Coinbase shares, valued at $1.54 billion.

Of 17 brokerages covering the stock, 11 rate the shares as a Buy or Strong Buy, with another four giving the stock a Hold rating. At a recent trading price of around $276.20, the upside potential based on a median price target of $298 is nearly 8%. At the high price target of $650, upside potential rises to 135%.

For its June quarter, Coinbase is expected to report revenue of $1.8 billion, which would be flat compared with the prior quarter. Earnings per share (EPS) are forecast at $3.05, also flat sequentially. For the full year, EPS is estimated to come in at $8.57 and revenue is forecast at $6.25 billion, compared with 2020 revenue of $1.28 billion. The company reports results after markets closed on Tuesday.

Shares trade at 73.4 times expected 2021 EPS, 111.2 times estimated 2022 earnings and 93.5 times estimated 2023 earnings. The stock’s post-IPO range is $208.00 to $429.54. Coinbase does not pay a dividend.

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