Riot Platforms, Inc. (RIOT) Expected to Beat Earnings Estimates: Should You Buy?

Core Viewpoint - Riot Platforms, Inc. is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ending December 2024, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is scheduled for February 24, 2025, with a consensus estimate of a quarterly loss of $0.27 per share, reflecting a year-over-year change of -156.3$129.3 million, representing a 64% increase from the previous year [3][2]. Estimate Revisions - The consensus EPS estimate has been revised 1.75% higher in the last 30 days, indicating a collective reassessment by analysts [4]. The Most Accurate Estimate is higher than the Zacks Consensus Estimate, leading to a positive Earnings ESP of +4.94%, suggesting a likelihood of beating the consensus EPS estimate [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3. Stocks with this combination have historically produced a positive surprise nearly 70% of the time [8][9]. Historical Performance - In the last reported quarter, Riot Platforms, Inc. was expected to post a loss of $0.22 per share but actually reported a loss of$0.54, resulting in a surprise of -145.45%. Over the last four quarters, the company has beaten consensus EPS estimates two times [12][13]. Conclusion - While Riot Platforms, Inc. appears to be a compelling candidate for an earnings beat, other factors should also be considered when evaluating the stock ahead of its earnings release [16].