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.
Can Healthy Revenue Growth Aid Pinterest (PINS) Q2 Earnings?
Read MoreHide Full Article
Pinterest, Inc (PINS - Free Report) is scheduled to report second-quarter 2022 results on Aug 1. after the market closes. In the last reported quarter, the company delivered an earnings surprise of 150.0%. It pulled off a trailing four-quarter earnings surprise of 67%, on average.
The San Francisco-based platform company is expected to have recorded year-over-year higher revenues due to rise in sales in U.S.-based markets.
Factors at Play
In the second quarter, Pinterest completed the acquisition of THE YES, an AI-powered shopping platform for fashion that enables users to shop a personalized feed based on the user’s active input on brand, style and size. Pinterest is setting up a destination for shopping that brings together the unique commercial intent of its audience and the ability to visually explore products as on a catalog. This acquisition will accelerate Pinterest’s vision to be the home of taste-driven shopping and is likely to have aided its quarterly performance.
Pinterest is gradually establishing a unique value proposition to advertisers that could provide a competitive advantage in the long haul. Through various innovations, it continues dramatically improving the advertising platform, which presently appears to be one of the best for consumer discretionary brands looking for new ways to reach customers and stretch smaller advertisement budgets. The consensus estimate for revenues from the United States stands at $534 million, which implies an increase from $480 million reported a year ago.
The company expects operating expenses to increase substantially in the near term as it seeks to expand operations, domestically and internationally, enhance product offerings, broaden Pinner and advertiser base, expand marketing channels, hire additional employees and develop technology. These efforts will likely weigh in on the company’s bottom-line growth in the near term. The consensus estimate for International Revenue stands at $81 million, which indicates a decline from $133 million reported a year ago.
For the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $665 million, which indicates growth of 8.5% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share stands at 17 cents, suggesting a decline of 32.0% year over year.
What Our Model Says
Our proven model predicts an earnings beat for PINS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is just the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Pinterest Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, stands at +3.48%.
Zacks Rank: Pinterest currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Albemarle Corporation (ALB - Free Report) has an Earnings ESP of +11.87% and a Zacks Rank #2. Albemarle is set to report second-quarter 2022 results on Aug 3.
Fastly, Inc. (FSLY - Free Report) is scheduled to release second-quarter 2022 results on Aug 3. Fastly has an Earnings ESP of +8.40% and a Zacks Rank #2.
Image: Bigstock
Can Healthy Revenue Growth Aid Pinterest (PINS) Q2 Earnings?
Pinterest, Inc (PINS - Free Report) is scheduled to report second-quarter 2022 results on Aug 1. after the market closes. In the last reported quarter, the company delivered an earnings surprise of 150.0%. It pulled off a trailing four-quarter earnings surprise of 67%, on average.
The San Francisco-based platform company is expected to have recorded year-over-year higher revenues due to rise in sales in U.S.-based markets.
Factors at Play
In the second quarter, Pinterest completed the acquisition of THE YES, an AI-powered shopping platform for fashion that enables users to shop a personalized feed based on the user’s active input on brand, style and size. Pinterest is setting up a destination for shopping that brings together the unique commercial intent of its audience and the ability to visually explore products as on a catalog. This acquisition will accelerate Pinterest’s vision to be the home of taste-driven shopping and is likely to have aided its quarterly performance.
Pinterest is gradually establishing a unique value proposition to advertisers that could provide a competitive advantage in the long haul. Through various innovations, it continues dramatically improving the advertising platform, which presently appears to be one of the best for consumer discretionary brands looking for new ways to reach customers and stretch smaller advertisement budgets. The consensus estimate for revenues from the United States stands at $534 million, which implies an increase from $480 million reported a year ago.
The company expects operating expenses to increase substantially in the near term as it seeks to expand operations, domestically and internationally, enhance product offerings, broaden Pinner and advertiser base, expand marketing channels, hire additional employees and develop technology. These efforts will likely weigh in on the company’s bottom-line growth in the near term. The consensus estimate for International Revenue stands at $81 million, which indicates a decline from $133 million reported a year ago.
For the June quarter, the Zacks Consensus Estimate for total revenues is pegged at $665 million, which indicates growth of 8.5% from the year-ago quarter’s reported figure. The consensus estimate for adjusted earnings per share stands at 17 cents, suggesting a decline of 32.0% year over year.
What Our Model Says
Our proven model predicts an earnings beat for PINS this season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is just the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Earnings ESP: Pinterest Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, stands at +3.48%.
Zacks Rank: Pinterest currently carries a Zacks Rank #3.
Other Stocks to Consider
Here are some other companies that you may want to consider, as our model shows that these too have the right combination of elements to post an earnings beat this quarter:
Sunrun Inc. (RUN - Free Report) is slated to release second-quarter 2022 results on Aug 3. Sunrun has an Earnings ESP of +35.86% and a Zacks Rank #2. the complete list of today’s Zacks #1 Rank stocks here.
Albemarle Corporation (ALB - Free Report) has an Earnings ESP of +11.87% and a Zacks Rank #2. Albemarle is set to report second-quarter 2022 results on Aug 3.
Fastly, Inc. (FSLY - Free Report) is scheduled to release second-quarter 2022 results on Aug 3. Fastly has an Earnings ESP of +8.40% and a Zacks Rank #2.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.