Riot Platforms Q1 2024 Earnings Report: Strong Buy Rating Maintained

B. Riley Securities's Lucas Pipes lowered their price target on Riot Platforms (NASDAQ: RIOT) by 6.3% from $16 to $15 on May 6th, 2024. The analyst maintained their Strong Buy rating on the stock.

Pipes' decision to lower the price target comes in the wake of Riot Platforms' Q1 2024 earnings report, which was released on May 1st, 2024. The report revealed that the company had achieved impressive results, with earnings per share (EPS) of $0.81, beating the Zacks Consensus Estimate of $(0.21) and showing a significant increase of 1925% compared to Q1 2023's EPS of $0.04. However, revenue for the quarter came in at $79.3 million, slightly below the Zacks Consensus Estimate of $92.16 million but still representing a year-over-year increase of 8.3%.

Notably, the B. Riley Securities analyst also provided insights into the valuation of Bitcoin. According to Pipes, the firm's data indicates that Bitcoin was valued at $59,196 on May 2nd, 2024, marking a 7% decrease from its mark-to-market on April 19th, 2024. Pipes also highlighted that transaction fees accounted for approximately 8% of the overall block reward.

In a press release and earnings call, Riot Platforms' management did not provide guidance for the future. However, CEO Jason Les expressed excitement about the company's Q1 2024 results and emphasized the significant milestones achieved during this period. Les specifically mentioned the successful energization of the Corsicana Facility, which is expected to become the largest dedicated Bitcoin mining facility upon completion. Les also outlined the company's plans to increase its self-mining hash rate capacity to 31 EH/s by the end of the year, nearly tripling its existing hash rate capacity.

Despite the revised price target, it is worth noting that 100% of top-rated analysts currently rate RIOT as a Strong Buy or Buy. No analysts consider it a Hold, and none recommend selling the stock. The consensus forecast among analysts is that RIOT will deliver earnings per share of $1.03 in the upcoming year, representing a year-over-year increase of 17.3%.

Since Riot Platforms' latest quarterly report on May 1st, 2024, the stock price has increased by 9.7%. Over the same period, the stock is up 2.7% year-over-year but has trailed the S&P 500, which has experienced a significant gain of 25.2%.

Lucas Pipes, the B. Riley Securities analyst who adjusted the price target for Riot Platforms, is ranked in the top 11% of Wall Street analysts by WallStreetZen. With an average return of 5.9% and a win rate of 49.7%, Pipes specializes in various sectors, including Industrials and Consumer Cyclical.

Riot Platforms, Inc., headquartered in Castle Rock, Colorado, focuses on bitcoin mining operations in North America. The company operates through three segments: Bitcoin Mining, Data Center Hosting, and Electrical Products and Engineering. As of December 31st, 2021, Riot Platforms operated approximately 30,907 miners.

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