Wall Street analysts expect Coinbase's Q1 earnings report to be below expectations

ChainCatcher news, according to CoinDesk, the cryptocurrency exchange platform Coinbase (COIN) is about to announce its first-quarter earnings report amid a turbulent backdrop. Wall Street analysts expect its performance to fall short of expectations, as sluggish retail trading may impact the platform's most profitable business segment.

According to FactSet data, the company is scheduled to release its quarterly report after the market closes on Thursday. Analysts predict its earnings per share (EPS) will drop from $2.26 in the fourth quarter of last year to $1.93, with revenue declining from $2.27 billion to $2.1 billion. This represents a significant decline compared to the same period last year, when EPS was $4.40 and revenue was $1.2 billion. The trading volume for the quarter is expected to reach $403.8 billion, down from $439 billion in the fourth quarter of last year.

JPMorgan has lowered its EPS forecast to $1.59, noting that Coinbase's trading volume for the quarter has shrunk by 10%, and the total market capitalization of cryptocurrencies has fallen by 17%. Excluding the impact of impairment on crypto assets, adjusted EPS could reach $2.39, benefiting from cost control and stable subscription revenue.