Circle Earnings Preview: Analysts Predict $0.19 EPS Amid Bearish Sentiment

Circle Internet Group Inc., the NYSE-listed stablecoin issuer, is set to release its second-quarter earnings before market open on Wednesday. Analysts predict Circle will report an earnings per share of $0.19, a significant improvement from last year's loss of $0.43 in the same quarter.

Circle exceeded earnings expectations in the first quarter but fell short on revenue estimates. The company's primary source of income is interest earned on USDC reserves, mainly in short-term U.S. Treasuries and cash.

Despite a 4.6% decline in USDC circulation to $73.77 billion in the second quarter, according to DeFiLlama, Circle carries a consensus 'Buy' rating from 21 analysts with an average price target of $120, implying about 99% upside from current levels.

A rising short interest at 27.11 million shares represents 12% of Circle's publicly available float, typically interpreted as a bearish signal. However, traders are buying more call options than put options, indicating strong bullish speculation.