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Will Top-Line Expansion Boost Pinterest's (PINS) Q4 Earnings?
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Pinterest, Inc. (PINS - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 8, 2024 after the closing bell. The company pulled off a trailing four-quarter earnings surprise of 37.3%, on average. In the last reported quarter, it reported an earnings surprise of 33.3%.
The company is taking multiple initiatives to bring more actionable content on the platform from a wide range of sources such as users, creators, publishers and retailers for enhancing customer engagement activities. It is also emphasizing on building new ad tools and formats to help grow the scope of monetization on the platform. An approach to leverage their unique features by elevating their presence and designing engaging contents is likely to result in a top-line expansion year over year during the quarter.
Factors at Play
During the quarter, Pinterest introduced various product updates and unique features that enable advertisers and agencies to better connect with 482 million monthly users, a major chunk of them being Gen Z population. The coveted 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, which will enable advertisers to reach users from the moment they access the platform.
Pinterest offers a robust search feature, allowing users to search content as per their choices. The platform uses visual search technology, enabling users to discover ideas based on images they find appealing. These initiatives are likely to have increased their reach beyond its existing user base and translated into higher revenues in the quarter.
The acquisition of the AI-powered, high-tech fashion-shopping platform, The Yes, has enabled it to create a strategic organization to help steer the evolution of its features and merchants. Pinterest and The Yes share a common vision of making it easy for customers to find products matching their tastes and style. The combined company has been making continuous efforts to absorb creators publishing videos and live streams in order to make the shopping experience swift and easy for customers.
Pinterest is witnessing greater engagement on the platform from its existing user base. The company’s focus on improving operational rigor and incorporation of sophisticated AI models to enhance relevancy and personalization is likely to bring long-term benefits. The company is also emphasizing on building new ad tools and formats to help grow the scope of monetization on the platform. Pinterest has partnered with Amazon to further capitalize on the commercial intent of its user base and increase shop ability on its platform. This is likely to have been reflected in the upcoming quarterly results.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $989 million, suggesting an increase from the year-ago quarter’s reported figure of $877 million. The consensus estimate for adjusted earnings per share is pegged at 51 cents, up from 29 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 0.00%, with both pegged at 51 cents. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
InterDigital, Inc. (IDCC - Free Report) is set to release quarterly numbers on Feb 15. It has an Earnings ESP of +1.93% and a Zacks Rank #2
Silicon Motion Technology (SIMO - Free Report) has an Earnings ESP of +4.92% and carries a Zacks Rank of 2. The company is set to report quarterly numbers on Feb 6.
Image: Bigstock
Will Top-Line Expansion Boost Pinterest's (PINS) Q4 Earnings?
Pinterest, Inc. (PINS - Free Report) is scheduled to report fourth-quarter 2023 results on Feb 8, 2024 after the closing bell. The company pulled off a trailing four-quarter earnings surprise of 37.3%, on average. In the last reported quarter, it reported an earnings surprise of 33.3%.
The company is taking multiple initiatives to bring more actionable content on the platform from a wide range of sources such as users, creators, publishers and retailers for enhancing customer engagement activities. It is also emphasizing on building new ad tools and formats to help grow the scope of monetization on the platform. An approach to leverage their unique features by elevating their presence and designing engaging contents is likely to result in a top-line expansion year over year during the quarter.
Factors at Play
During the quarter, Pinterest introduced various product updates and unique features that enable advertisers and agencies to better connect with 482 million monthly users, a major chunk of them being Gen Z population. The coveted 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, which will enable advertisers to reach users from the moment they access the platform.
Pinterest offers a robust search feature, allowing users to search content as per their choices. The platform uses visual search technology, enabling users to discover ideas based on images they find appealing. These initiatives are likely to have increased their reach beyond its existing user base and translated into higher revenues in the quarter.
The acquisition of the AI-powered, high-tech fashion-shopping platform, The Yes, has enabled it to create a strategic organization to help steer the evolution of its features and merchants. Pinterest and The Yes share a common vision of making it easy for customers to find products matching their tastes and style. The combined company has been making continuous efforts to absorb creators publishing videos and live streams in order to make the shopping experience swift and easy for customers.
Pinterest is witnessing greater engagement on the platform from its existing user base. The company’s focus on improving operational rigor and incorporation of sophisticated AI models to enhance relevancy and personalization is likely to bring long-term benefits. The company is also emphasizing on building new ad tools and formats to help grow the scope of monetization on the platform. Pinterest has partnered with Amazon to further capitalize on the commercial intent of its user base and increase shop ability on its platform. This is likely to have been reflected in the upcoming quarterly results.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $989 million, suggesting an increase from the year-ago quarter’s reported figure of $877 million. The consensus estimate for adjusted earnings per share is pegged at 51 cents, up from 29 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 0.00%, with both pegged at 51 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 a beat this season:
NVIDIA Corporation (NVDA - Free Report) is set to release quarterly numbers on Feb 21. It has an Earnings ESP of +3.68% and carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
InterDigital, Inc. (IDCC - Free Report) is set to release quarterly numbers on Feb 15. It has an Earnings ESP of +1.93% and a Zacks Rank #2
Silicon Motion Technology (SIMO - Free Report) has an Earnings ESP of +4.92% and carries a Zacks Rank of 2. The company is set to report quarterly numbers on Feb 6.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.