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Will Modest Revenue Growth Aid Pinterest (PINS) Q1 Earnings?

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Pinterest, Inc. (PINS - Free Report) is scheduled to report first-quarter 2023 results on Apr 27 after the closing bell. In the last reported quarter, the company reported an earnings surprise of 3.57%. It pulled off a trailing four-quarter earnings surprise of 59.57%, on average.  The company is undertaking various initiatives to attract more businesses to its platform and increase user base through better content. Backed by these developments, the San Francisco-based Internet content provider is likely to have recorded higher revenues year over year.

Factors at Play

During the first quarter, Pinterest announced a global content partnership with Conde Nast Entertainment, a premier media company with a portfolio of well-known brands such as Vogue and Architectural Digest. These brands cover a range of topics, including fashion, culture, architecture, home and design. The partnership is Pinterest’s broader strategy to offer more engaging, unique and high-quality content that align with user’s interest and provide brands and advertisers new opportunities to reach its highly-engaged audience. These initiatives are likely to have translated into higher revenues in the quarter.

During the to-be-reported quarter, Pinterest unveiled the latest edition of Pinterest Academy — a program designed to make the most of the platform’s advertising tools. It offers a range of courses, tutorials and diverse topics, including how to create compelling Pins, how to target the right audience and how to measure the success of ad campaigns. The launch of Pinterest Academy is part of its ongoing efforts to support advertisers and drive more business to its platform.

In the first quarter, Pinterest announced the expansion of its new standalone app called Shuffles in nine more countries — Austria, Germany, France, Switzerland, Denmark, Norway, Sweden, Finland and Netherlands. The new app includes several features like overlap, adding elements and animations to images. It enhances creators’ ability to express their ideas with digital art and simplifies the process of content creation. Such initiatives are likely to have improved Pinterest’s first-quarter  revenues.

However, higher operating expenses for expanding operations domestically and internationally, enhancing product offerings, broadening Pinner and advertiser base, expanding marketing channels, hiring additional employees and developing technology are likely to have weighed on the margins.

For the March quarter, the Zacks Consensus Estimate for total revenues is pegged at $598 million, suggesting growth from the year-ago quarter’s reported figure of $575 million. The consensus estimate for adjusted earnings per share is pegged at break even, indicating a decline from 10 cents reported in the prior year.

Earnings Whispers

Our proven model predict an earnings beat for Pinterest this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is perfectly the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 250.01%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Pinterest, Inc. Price and EPS Surprise

 

Pinterest, Inc. Price and EPS Surprise

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

 

Zacks Rank: Pinterest currently has a Zacks Rank #3.

Other Stocks to Consider

Here are some other companies you may want to consider, as our model shows that these have the right combination of elements to post a beat this season:

Juniper Networks, Inc. (JNPR - Free Report) is set to release quarterly numbers on Apr 25. It has an Earnings ESP of +10.44% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for T-Mobile US, Inc. (TMUS - Free Report) is +5.54% and it carries a Zacks Rank of 3. The company is scheduled to report first quarter numbers on Apr 27.

The Earnings ESP for Meta Platforms, Inc. (META - Free Report) is +11.23% and it sports a Zacks Rank of 1. The company is scheduled to report first quarter numbers on Apr 26.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar

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