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

Riot Platforms, Inc. RIOT will report its fourth-quarter 2024 results on Feb. 24, after the 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 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.Image Source: Zacks Investment ResearchRIOT 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%.Image Source: Zacks Investment ResearchRIOT May Beat This Time AroundOur 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 ResultsRIOT’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 DynamicsRIOT 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 PerformanceImage Source: Zacks Investment ResearchPre-Earnings Investment ConsiderationsRIOT 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.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 Cipher Mining Inc. (CIFR): 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