We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Pinterest (PINS) to Report Q4 Earnings: What's in Store?
Read MoreHide Full Article
Pinterest (PINS - Free Report) is set to report fourth-quarter 2020 results on Feb 4.
The Zacks Consensus Estimate for fourth-quarter earnings has increased by 6.7% to 32 cents per share over the past 30 days.
The consensus mark for revenues is pegged at $645.7 million, indicating an increase of 61.4% from the year-ago quarter.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, the average surprise being 324.9%.
Pinterest’s initiative to launch board features to make home, wellness, and gifting plans as quarantine-driven projects is expected to have boosted user engagement in the soon-to-be-reported quarter.
The company stated that there has been a 35% year-over-year increase in the number of monthly boards created, including a 44% increase in beauty, a 95% increase in women's fashion and a 36% increase in home decor categories.
Additionally, in the fourth quarter, Pinterest launched the Pinterest widget for iOS 14 to make it possible for Pinners to feature a board of their own or one they follow, and see daily inspiration right from their iPhone home screen.
Moreover, Pinterest announced a collaboration with Microsoft (MSFT - Free Report) Edge. Now, Microsoft Edge users can discover relevant Pins in Microsoft Collections and even export back to Pinterest. Pinners using Microsoft Edge can opt to see suggestions from Pinterest that are related to their collection. Clicking on a suggestion will open a board of similar, trending Pins so users can continue discovering Pins related to the topic.
Further, the company’s expansion in countries including the UK, Canada, Australia, Singapore, India and New Zealand amid coronavirus-induced social distancing guidelines is expected to have contributed to international user base growth in the to-be-reported quarter.
In third-quarter 2020, monthly active users (MAUs) Global increased 37% year over year to 442 million. Users who began engaging in Pinterest during COVID-19 continued to have high levels of engagement even after shelter-in-place restrictions were eased. This is expected to have continued in the soon-to-be reported quarter.
In October, Pinterest launched a suite of merchant tools to help retailers reach customers in the holiday season and beyond, including a new storefront profile, faster Catalogs feed ingestion, collections as a shopping ad format, video for collections, automatic bidding, conversion insights and analysis, and an improved product tagging test.
This is expected to have increased advertisers on the platform, thus driving average revenue per user (ARPU) in the to-be-reported quarter.
Moreover, the launch of a new app with Shopify (SHOP - Free Report) , giving Pinterest’s more than one million merchants a quick way to upload catalogs to Pinterest and turn their products into shoppable Product Pins in just a few clicks, is expected to have continued to improve advertiser engagement and experience on the platform in the to-be reported quarter.
However, recovering yet weak advertising demand due to coronavirus-led business slowdown across the globe and increasing competition for ad dollars from the likes of Facebook, Amazon, Google and Twitter are expected to have been major headwinds for the company in the soon-to-be-reported quarter.
Moreover, rapid growth in international user base is expected to have hurt ARPU in the to-be-reported quarter as monetization rate has been low in international markets.
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.
Pinterest has an Earnings ESP of +7.09% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Another Stock to Consider
Here is another company you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat in its upcoming releases:
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Image: Bigstock
Pinterest (PINS) to Report Q4 Earnings: What's in Store?
Pinterest (PINS - Free Report) is set to report fourth-quarter 2020 results on Feb 4.
The Zacks Consensus Estimate for fourth-quarter earnings has increased by 6.7% to 32 cents per share over the past 30 days.
The consensus mark for revenues is pegged at $645.7 million, indicating an increase of 61.4% from the year-ago quarter.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing in one, the average surprise being 324.9%.
Pinterest, Inc. Price and EPS Surprise
Pinterest, Inc. price-eps-surprise | Pinterest, Inc. Quote
Factors to Consider
Pinterest’s initiative to launch board features to make home, wellness, and gifting plans as quarantine-driven projects is expected to have boosted user engagement in the soon-to-be-reported quarter.
The company stated that there has been a 35% year-over-year increase in the number of monthly boards created, including a 44% increase in beauty, a 95% increase in women's fashion and a 36% increase in home decor categories.
Additionally, in the fourth quarter, Pinterest launched the Pinterest widget for iOS 14 to make it possible for Pinners to feature a board of their own or one they follow, and see daily inspiration right from their iPhone home screen.
Moreover, Pinterest announced a collaboration with Microsoft (MSFT - Free Report) Edge. Now, Microsoft Edge users can discover relevant Pins in Microsoft Collections and even export back to Pinterest. Pinners using Microsoft Edge can opt to see suggestions from Pinterest that are related to their collection. Clicking on a suggestion will open a board of similar, trending Pins so users can continue discovering Pins related to the topic.
Further, the company’s expansion in countries including the UK, Canada, Australia, Singapore, India and New Zealand amid coronavirus-induced social distancing guidelines is expected to have contributed to international user base growth in the to-be-reported quarter.
In third-quarter 2020, monthly active users (MAUs) Global increased 37% year over year to 442 million. Users who began engaging in Pinterest during COVID-19 continued to have high levels of engagement even after shelter-in-place restrictions were eased. This is expected to have continued in the soon-to-be reported quarter.
In October, Pinterest launched a suite of merchant tools to help retailers reach customers in the holiday season and beyond, including a new storefront profile, faster Catalogs feed ingestion, collections as a shopping ad format, video for collections, automatic bidding, conversion insights and analysis, and an improved product tagging test.
This is expected to have increased advertisers on the platform, thus driving average revenue per user (ARPU) in the to-be-reported quarter.
Moreover, the launch of a new app with Shopify (SHOP - Free Report) , giving Pinterest’s more than one million merchants a quick way to upload catalogs to Pinterest and turn their products into shoppable Product Pins in just a few clicks, is expected to have continued to improve advertiser engagement and experience on the platform in the to-be reported quarter.
However, recovering yet weak advertising demand due to coronavirus-led business slowdown across the globe and increasing competition for ad dollars from the likes of Facebook, Amazon, Google and Twitter are expected to have been major headwinds for the company in the soon-to-be-reported quarter.
Moreover, rapid growth in international user base is expected to have hurt ARPU in the to-be-reported quarter as monetization rate has been low in international markets.
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.
Pinterest has an Earnings ESP of +7.09% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Another Stock to Consider
Here is another company you may want to consider, as our model shows that it has the right combination of elements to post an earnings beat in its upcoming releases:
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +6.69% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Names “Single Best Pick to Double”
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>