Coinbase Q1 earnings preview: Poor show expected amid weaker trading volumes

Coinbase ( NASDAQ: COIN ) is scheduled to announce Q1 results after market close on Thursday (May 4), at a time when the cyrptocurrency exchange has been facing heightened regulatory scrutiny as well as slowing trading volumes. The consensus EPS estimate is -$0.86 and the consensus revenue estimate is $653.3M (-43.7% Y/Y). Over the last 1 year, COIN has beaten EPS and revenue estimates 25% of the time. Over the last 3 months, EPS estimates have seen 1 upward revision and 1 downward. Revenue estimates have seen 13 upward revisions and 4 downward. Regulators have been stepping up oversight of crypto firms, including Coinbase ( COIN ) which received a Wells notice from the SEC. Oppenheimer believes an SEC enforcement action can put ~35% of COIN's revenue at risk . CEO Brian Armstrong hinted at a possible relocation outside the U.S. if regulatory clarity does not improve. Coinbase ( COIN ) continues to expand internationally and just launched a crypto derivatives exchange in Bermuda. However, Coinbase's ( COIN ) trading volumes remain a cause for concern. Bank of America noted that transaction volumes roughly stalled from Q4 . "Despite COIN's recent efforts to boost sentiment (e.g. international exchange launch), fundamentals remain weak," said Mizuho. "Average daily trading volumes are $1.16B in Q2-to-date, -27% below both March and overall Q1 levels. Meanwhile, H.C. Wainwright expects Coinbase ( COIN ) will gain more market share this year and believes the selloff sparked by the Wells notice is overdone. More on Coinbase Here Are The Big Problems Dogging Coinbase (Aside From SEC) Coinbase Stock: Don't Fight The SEC Coinbase 10-K and USDC Examination Reports Raise Questions