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Will Revenue Growth Boost Pinterest's (PINS) Q3 Earnings?
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Pinterest, Inc. (PINS - Free Report) is scheduled to report third-quarter 2023 results on Oct 30, after the closing bell. The company pulled off a trailing four-quarter earnings surprise of 66.19%, on average. In the last reported quarter, it reported an earnings surprise of 75%.
The company is adopting multiple strategies to foster deeper brand-customer engagement on the platform. It has introduced a wide range of enhancements in automated tools to improve the effectiveness of ad campaigns and enhance revenue potential for retailers. An approach to improve personalization on the platform will likely drive user engagement and result in a top-line expansion year over year during the quarter.
Factors at Play
During the quarter, Pinterest introduced various product updates and new features that enable advertisers and agencies to better connect with 465 million monthly users. The premium spotlight feature brings premium advertising spaces on the platform to enhance ad visibility. The company has extended this feature from search results to home feed, and it will enable advertisers to reach users from the moment they access the platform.
The quiz ad features improve personalization on the platforms. It allows brands to incorporate three questions per quiz, and the insights guide consumers toward more informed decisions. These initiatives are likely to have translated into higher revenues in the quarter.
In the quarter under review, Pinterest enhanced the capabilities of its automated business tools, including Pinterest Business Manager. The tools are designed to assist agencies to better manage their client presence on the platform. The advanced feature includes a comprehensive business dashboard to efficiently assess the impact of ad investments. The latest audience-sharing feature will facilitate the development of effective tactics for targeting audiences. The company is also developing a new tool called Creative Studio, which will allow the swift creation of lifestyle images for the brand’s product pins.
Pinterest has also been undertaking various initiatives to boost shoppability on the platform. The company has added direct links with Mobile deep links on the platform. Direct Links streamline users’ journey from discovering a product to checkout and also improve the sales conversion rate for the retailers. With this feature, users can access the retailer’s website with a single click through a Pinterest ad, reducing the overall steps required for purchase.
The company is strongly emphasizing e-commerce integration to open up new revenue opportunities for retailers. It has collaborated with Salesforce Commerce Cloud and Adobe Commerce native applications to expand its e-commerce ecosystem. Such initiatives are likely to have had a favorable impact on the company’s third-quarter earnings.
Our estimate for average revenues per user (ARPU) from the United States and Canada is pegged at $6.30. Our estimate for Europe’s ARPU is pegged at $0.90. Per our estimate, monthly active users (MAUs) from the United States and Canada are expected at 95 million in the third quarter. MAUs from Europe are approximated to be 125.3 million. MAUs from the rest of the world are estimated at 239 million.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $743 million, suggesting an increase from the year-ago quarter’s reported figure of $685 million. The consensus estimate for adjusted earnings per share is pegged at 21 cents, up from 11 cents reported in the prior year.
Earnings Whispers
Our proven model does not conclusively 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. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -4.19%. The Most Accurate Estimate is pegged at 20 cents, while the Zacks Consensus Estimate stands at 21 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Pinterest currently sports a Zacks Rank #1.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Motorola Solutions, Inc. (MSI - Free Report) has an Earnings ESP of +3.58% and carries a Zacks Rank of 3. The company is set to report quarterly numbers on Nov 2.
ON Semiconductor (ON - Free Report) has an Earnings ESP of +1.00% and carries a Zacks Rank of 2. The company is set to report quarterly numbers on Oct 30.
Image: Bigstock
Will Revenue Growth Boost Pinterest's (PINS) Q3 Earnings?
Pinterest, Inc. (PINS - Free Report) is scheduled to report third-quarter 2023 results on Oct 30, after the closing bell. The company pulled off a trailing four-quarter earnings surprise of 66.19%, on average. In the last reported quarter, it reported an earnings surprise of 75%.
The company is adopting multiple strategies to foster deeper brand-customer engagement on the platform. It has introduced a wide range of enhancements in automated tools to improve the effectiveness of ad campaigns and enhance revenue potential for retailers. An approach to improve personalization on the platform will likely drive user engagement and result in a top-line expansion year over year during the quarter.
Factors at Play
During the quarter, Pinterest introduced various product updates and new features that enable advertisers and agencies to better connect with 465 million monthly users. The premium spotlight feature brings premium advertising spaces on the platform to enhance ad visibility. The company has extended this feature from search results to home feed, and it will enable advertisers to reach users from the moment they access the platform.
The quiz ad features improve personalization on the platforms. It allows brands to incorporate three questions per quiz, and the insights guide consumers toward more informed decisions. These initiatives are likely to have translated into higher revenues in the quarter.
In the quarter under review, Pinterest enhanced the capabilities of its automated business tools, including Pinterest Business Manager. The tools are designed to assist agencies to better manage their client presence on the platform. The advanced feature includes a comprehensive business dashboard to efficiently assess the impact of ad investments. The latest audience-sharing feature will facilitate the development of effective tactics for targeting audiences. The company is also developing a new tool called Creative Studio, which will allow the swift creation of lifestyle images for the brand’s product pins.
Pinterest has also been undertaking various initiatives to boost shoppability on the platform. The company has added direct links with Mobile deep links on the platform. Direct Links streamline users’ journey from discovering a product to checkout and also improve the sales conversion rate for the retailers. With this feature, users can access the retailer’s website with a single click through a Pinterest ad, reducing the overall steps required for purchase.
The company is strongly emphasizing e-commerce integration to open up new revenue opportunities for retailers. It has collaborated with Salesforce Commerce Cloud and Adobe Commerce native applications to expand its e-commerce ecosystem. Such initiatives are likely to have had a favorable impact on the company’s third-quarter earnings.
Our estimate for average revenues per user (ARPU) from the United States and Canada is pegged at $6.30. Our estimate for Europe’s ARPU is pegged at $0.90. Per our estimate, monthly active users (MAUs) from the United States and Canada are expected at 95 million in the third quarter. MAUs from Europe are approximated to be 125.3 million. MAUs from the rest of the world are estimated at 239 million.
For the September quarter, the Zacks Consensus Estimate for total revenues is pegged at $743 million, suggesting an increase from the year-ago quarter’s reported figure of $685 million. The consensus estimate for adjusted earnings per share is pegged at 21 cents, up from 11 cents reported in the prior year.
Earnings Whispers
Our proven model does not conclusively 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. That is not the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is -4.19%. The Most Accurate Estimate is pegged at 20 cents, while the Zacks Consensus Estimate stands at 21 cents. 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-eps-surprise | Pinterest, Inc. Quote
Zacks Rank: Pinterest currently sports a Zacks Rank #1.
Stocks to Consider
Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
NVIDIA Corporation (NVDA - Free Report) is set to release quarterly numbers on Nov 21. It has an Earnings ESP of +6.93% and sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Motorola Solutions, Inc. (MSI - Free Report) has an Earnings ESP of +3.58% and carries a Zacks Rank of 3. The company is set to report quarterly numbers on Nov 2.
ON Semiconductor (ON - Free Report) has an Earnings ESP of +1.00% and carries a Zacks Rank of 2. The company is set to report quarterly numbers on Oct 30.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.