CLSK Set to Report Q2 Earnings: What's in Store for the Stock?

CleanSpark CLSK is scheduled to release second-quarter fiscal 2025 results on May 8.

The Zacks Consensus Estimate for second-quarter earnings is pegged at 3 cents per share, revised upward by a cent over the past 30 days, indicating a 76.92% year-over-year decline.

The Zacks Consensus Estimate for revenues is pegged at $197.07 million, indicating a year-over-year increase of 76.27%.

CLSK has a mixed earnings surprise history. It missed the Zacks Consensus Estimate in two of the trailing four quarters and beat the other two, delivering an average earnings surprise of 11.54%. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Cleanspark, Inc. Price and EPS Surprise

Cleanspark, Inc. price-eps-surprise | Cleanspark, Inc. Quote

Let us see how things have shaped up for the upcoming announcement.

Key Factors to Consider for CleanSpark

CleanSpark’s second-quarter performance is expected to have continued benefiting from its strategic investments in energy-efficient infrastructure and its growing mining fleet.

The company’s operational efficiency, driven by its investment in S21 and S21 XT immersion units, is likely to have supported its revenue growth. These units, which offer improved efficiency, are aligned with CleanSpark’s expansion strategy, enabling the company to scale its operations while minimizing idle assets. The addition of these units is expected to help CleanSpark progress toward its 50 exahash target in the first half of fiscal 2025. These enhancements are expected to have contributed positively to the company's performance in the second quarter of fiscal 2025.

CleanSpark’s ability to scale efficiently is further supported by its strong infrastructure foundation. With key components like transformers and power distribution already sourced, the company is well-positioned to meet its mid-year target of 50 exahash. This will position CleanSpark to capitalize on Bitcoin’s fluctuating prices while maintaining a cost-effective mining operation, which is likely to have benefited its performance in the to be reported quarter.

Additionally, CleanSpark’s strategy of focusing on Bitcoin mining rather than speculative high-performance computing deployments is expected to continue to drive stable, proven revenues. Progress in the company’s Bitcoin mining operations, which require less infrastructure complexity and offer shorter deployment timelines, is expected to have continued in the second quarter of fiscal 2025. 

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the exact case here.

CLSK has an Earnings ESP of -180.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few companies worth considering, as our model indicates that they possess the right combination of factors to exceed earnings expectations in their upcoming releases:

Modiv Industrial, Inc. MDV has an Earnings ESP of +8.20% and sports a Zacks Rank of #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Modiv Industrial, Inc. shares have appreciated 4.7% year to date. MDV is set to report its first-quarter 2025 results on May 7.

Root ROOT presently has an Earnings ESP of +25.84% and sports a Zacks Rank #1. 

Root shares have surged 97.9% year to date. ROOT is scheduled to report its first-quarter 2025 results on May 7.

Capital Southwest CSWC currently has an Earnings ESP of +3.23% and a Zacks Rank #2.

Capital Southwest shares have plunged 8.1% year to date. CSWC is slated to report its fourth quarter 2025 results on May 14.

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This article originally published on Zacks Investment Research (zacks.com).

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