Riot Platforms, Inc. RIOT will report its fourth-quarter 2024 results on Feb. 24, after the bell.
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The Zacks Consensus Estimate for the bottom line in the to-be-reported quarter is pegged at a loss of 27 cents per share against earnings of 48 cents in the year-ago quarter. The consensus mark for revenues stands at $129.3 million, indicating 64% year-over-year growth.
Two estimates for the to-be-reported quarter moved up over the past 30 days versus one downward revision. Over the same period, the Zacks Consensus Estimate for the fourth-quarter 2024 bottom line has remained unchanged.
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RIOT has had a decent earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in two of the past four quarters and missed twice, with the average negative surprise being 126.5%.
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RIOT May Beat This Time Around
Our model predicts a likely earnings beat for RIOT this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
RIOT currently has an Earnings ESP of +4.94% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Mining Revenues May Boost RIOT’s Results
RIOT’s top line in the to-be-reported quarter is likely to have benefited significantly from strong Bitcoin Mining revenues. The Zacks Consensus Estimate for revenues is pegged at $114 million, indicating 70% sequential growth. Engineering revenues are expected to remain flat sequentially.
RIOT’s Price Dynamics
RIOT has seen a notable rise in its stock price, soaring 39% over the past six months compared to the broader industry’s 93% growth. Other crypto-focused stocks exhibited mixed performance like Cipher Mining CIFR, up 50%, and Marathon Digital MARA, down 9.5% in the past six months.
One-Year Price Performance
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Pre-Earnings Investment Considerations
RIOT faces significant headwinds due to the Bitcoin halving event, which has doubled mining difficulty without a corresponding Bitcoin price surge. This has led to operational inefficiencies, with Riot's Bitcoin production increasing only 1% year over year in January 2025. The halving effect puts immense pressure on ASIC miners, raising concerns about future profitability.
Additionally, RIOT exhibits a high beta of 4.23, signaling extreme volatility. This makes the stock prone to sharp price swings, posing risks for short-term investors. While Bitcoin's long-term growth potential remains, RIOT's near-term challenges suggest a hold stance. Investors should adopt a wait-and-watch approach, monitoring RIOT’s quarterly report, Bitcoin's price movement and the company’s ability to improve efficiency before making further investment decisions.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
