Peter Thiel-Backed Q2 Numbers Hit This Week: Will the Crypto Exchange Defy Sluggish Volumes and Post an Earnings Beat?

Cryptocurrency exchange Bullish (NYSE:BLSH) will release earnings for the second quarter before the bell on Thursday. Here’s what investors should know ahead of the release.

A Glance at Consensus Estimates

Analysts estimate the firm to announce earnings per share of $0.09, down 90% year-over-year, an 30% from the previous quarter.

The firm is expected to report quarterly revenue of $87.90 million, up 50% from the same quarter last year.

The BLSH stock has a consensus price target of $49 based on the ratings of 11 analysts. In its most recent rating in June, JPMorgan analyst Kenneth Worthington maintained a “Neutral” rating on the stock while cutting the price target from $43 to $26.

‘Bullish’ or Bearish?

Short interest in the stock rose from 9.20 million to 9.90 million, accounting for 19.6% of the company’s publicly available float. A rising short interest is typically interpreted as a bearish signal.

As of this writing, the Moving Average Convergence Divergence indicator, which compares two exponential moving averages of an asset’s price, flashed a “Buy” signal for BLSH,  according to TradingView.

The Relative Strength Index hovered just above the centerline at 50, implying a “Neutral” condition.

Q2 Volumes Dip Sharply

Bullish reported $130.7 billion in total trading volume, including spot and derivatives, for the quarter ending June 30, down 33% from the previous quarter.

Bullish, backed by billionaire venture capitalist Peter Thiel, opened to a blockbuster debut in August of last year. Cathie Wood-led Ark Invest has also been a major investor in the company, acquiring approximately $247,000 in shares toward the end of July.

It operates a cryptocurrency exchange geared to institutional clients and also owns CoinDesk, a prominent cryptocurrency media and data brand.  Thomas Farley, former president of NYSE Group and current CEO, sold nearly $3 million worth of BLSH shares in April.

The exchange allows users to trade several cryptocurrencies, including Bitcoin (CRYPTO: BTC), Ethereum (CRYPTO: ETH) and Dogecoin (CRYPTO: DOGE).

Price Action: Shares of Bullish fell 0.61% in after-hours trading after closing 3.90% higher at $24.54 during Monday’s regular trading session, according to data from Benzinga Pro. Year-to-date, the stock has plunged 35%.

Benzinga’s Edge Stock Rankings signal long-term weakness in BLSH, with short- and medium-term trends also lagging.

Photo: Bigc Studio / Shutterstock