Pre-Q4 Earnings: Should MARA Stock be in Your Portfolio?

Marathon Digital Holdings, Inc. MARA will report its fourth-quarter 2024 results on Feb. 26, after the closing bell.See Zacks Earnings Calendar to stay ahead of market-making news.The Zacks Consensus Estimate for the bottom line in the to-be-reported quarter is pegged at a loss of 32 cents per share compared to a loss of 2 cents in the year-ago quarter. The consensus mark for revenues is $191 million, indicating 21.8% year-over-year growth.In the past 30 days, there have been no upward revisions for the upcoming quarter's earnings estimate, while one estimate was revised downward. During the same period, the Zacks Consensus Estimate for earnings for the fourth quarter of 2024 worsened, shifting from a projected loss of 30 cents to a loss of 32 cents.Image Source: Zacks Investment ResearchMARA has had an unimpressive earnings surprise history. Earnings surpassed the Zacks Consensus Estimate in three of the past four quarters and matched once, the average negative surprise being 136.1%.                                            Image Source: Zacks Investment ResearchLesser Chance of a Beat for MARA This TimeOur proven model doesn’t conclusively predict an 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.MARA has an Earnings ESP of -57.48% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.Dual Approach Should Boost MARA’s ResultsMARA’s top line in the to-be-reported quarter is likely to have benefited from the company’s dual approach to Bitcoin mining, combining revenue generation with strategic asset accumulation. By leveraging its expansive and energy-efficient mining operations, it produces Bitcoin at lower costs, ensuring consistent revenue streams. MARA retains a significant portion of the Bitcoin it mines, positioning itself to capitalize on potential price appreciation over time.MARA’s Price DynamicsThe stock has declined 39% over the past three months compared with the industry's impressive 39% rally. Over this period, MARA’s competitors in the bitcoin-mining space, like Riot Platforms, Inc. RIOT, declined 6%, and HuT 8 Corp. HUT dropped 25%.3 Month Price PerformanceImage Source: Zacks Investment ResearchPre-Earnings Investment ConsiderationsMARA remains a cautious hold amid a mixed performance landscape. Its strategic expansion through increased mining capacity and cost-effective facility acquisitions supports long-term growth. Additionally, the prospect of a crypto-friendly regulatory environment is likely to have provided a favorable tailwind for the company. Although its revenue generation appears robust, near-term profitability continues to face challenges. The firm’s balanced approach of combining immediate income with strategic asset accumulation, suggests that investors should hold their positions while awaiting operational improvements and a supportive market backdrop overall.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.3% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Marathon Digital Holdings, Inc. (MARA): Free Stock Analysis Report Riot Platforms, Inc. (RIOT): Free Stock Analysis Report Hut 8 Corp. (HUT): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks