Seeking Alpha
2022-01-18 21:23:17

Why did Silvergate Capital stock plummet today? Worse-than-expected Q4 earnings

Shares of cryptocurrency bank Silvergate Capital (NYSE:SI) drops 25.2% on Tuesday following worse-than-expected Q4 results with higher expenses. Specifically, Q4 noninterest expense of $11.1M declines from its $14.0M peak in Q3, while noninterest expense of $25.7M in Q4 climbs from $22.3M in the prior quarter. Q4 is the only quarter in 2021 when Silvergate Capital (SI) fell short on the earnings per share consensus, though it barely beat the Q3 EPS estimate. Additionally, consensus EPS revision trends going out as far as Q2 2023, remained mostly flat for all of last year. Meanwhile, bitcoin (BTC-USD +0.9%), which has a relatively strong correlation with SI stock, is yet to recover from its nearly three-month cyclical decline and is off almost 9% M/M. Last week, Silvergate Capital got upgraded to Outperform at KBW.

Get Crypto Newsletter
Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer