Earnings Previews: Coinbase, Palo Alto Networks, Transocean

U.S. bond and equity markets are closed Monday in observance of President’s Day.

Six of 11 market sectors closed higher Friday, but two of the three major indexes closed lower. Energy (down 3.65%) and technology (down 1.19%) gave up the most. Consumer staples (up 1.29%) and utilities (up 1%) posted the best gains. The Dow closed up 0.39%, the S&P 500 closed down 0.28%, and the Nasdaq Composite closed down 0.58%. Two-year Treasuries closed down 2 basis points at 4.6%, and 10-year notes slipped by 4 basis points to close at 3.82%. Oil traded down about 2.2% Friday and traded up by 0.65% early Monday morning at $76.78.

Thursday’s trading volume was slightly above the five-day average, and NYSE losers outpaced winners by 1,713 to 1,309, while Nasdaq advancers led decliners by about 11 to 10.

Before U.S. markets open Tuesday morning, Home Depot, Teck Resources, and Walmart will report quarterly results. Here’s our preview.

These three companies are on deck to report results after markets close Tuesday afternoon.


Coinbase Global Inc. (NASDAQ: COIN) posted its 52-week high nearly 11 months ago. Since then the shares have declined by 66%. The good news is that the stock has added 84% since the beginning of the year. Last week, the U.S. Securities and Exchange Commission proposed new rules to help protect crypto investors from fraud. Coinbase, which operates as an exchange, received a notice that it is now recognized as a qualified custodian by the SEC. That means its books are subjected to independent audits and that it complies with other SEC requests for documents. One could argue that Coinbase is in a better position than nearly every other crypto exchange as the SEC kicks off what appears to be an enforcement approach to regulating crypto.

Of 26 analysts covering the stock, just 9 have given the shares a Buy or Strong Buy rating, and 11 rate the stock a Hold. At a current price of around $65.00, the shares have outrun their median price target of $57.00. At the high target of $120.00, the upside potential is about 84.6%.

For the fourth quarter of 2022, the consensus revenue estimate is $587.37 million, down by about 0.5% sequentially and down by about 92% year over year. Analysts are forecasting an adjusted loss per share of $1.41, compared to a loss of $2.15 per share in the third quarter and adjusted earnings per share (EPS) of $3.35 in the year-ago quarter. For the full year, analysts now expect a loss per share of $5.55, compared to 2021 EPS of $17.10, on sales of $3.14 billion, down nearly 60%.

Coinbase is not expected to post a profit in 2022, 2023, or 2024. The enterprise value to sales multiple for each of the three years is 4.3, 4.9, and 3.9, respectively. The stock’s 52-week range is $31.55 to $206.79. Coinbase does not pay a dividend and the total shareholder return for the past year was negative 66.03%.

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