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Pinterest (PINS) to Report Q1 Earnings: What's in Store?
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Pinterest (PINS - Free Report) is set to report first-quarter 2021 results on Apr 27.
The Zacks Consensus Estimate for first-quarter earnings has remained steady at 7 cents per share over the past 30 days.
The consensus mark for revenues is pegged at $467.8 million, indicating an increase of 72.05% 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 315.6%.
Pinterest’s initiative to launch Story Pins following streams is expected to have boosted user engagement in the soon-to-be-reported quarter. It is a place for more than 442 million people who come to Pinterest every month to see new Story Pins from the creators they follow, right at the top of the home feed.
Additionally, in the first quarter, Pinterest launched its newest widget option for iOS called Interests, where Pinners can choose their top interests and have fresh content served to them daily on their home screen.
Moreover, Pinterest announced the launch of the company’s latest augmented reality feature — AR Try on for eyeshadow, with products from Lancome, YSL, Urban Decay, and NYX Cosmetics. The virtual eyeshadow experience can be found across more than 4,000 shoppable shades.
Further, the company’s new initiatives and partnerships with health institutions, doctors, and community organizations to highlight expert content around COVID-19 and to fight against COVID-19 vaccine misinformation are expected to have contributed to international user base growth in the to-be-reported quarter.
In fourth-quarter 2020, monthly active users (MAUs) Global increased 37% year over year to 459 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 with the rising wave of coronavirus cases internationally.
On Mar 3, Pinterest hosted its first global advertiser summit, Pinterest Presents, in which the company rolled out its latest ad product updates, including Pinterest Premiere, a new video ad solution, enabling advertisers to engage their audiences at scale, thanks to exclusive video placement, as well as Pinterest Trends and Conversion Insights, the latest planning and measurements tools that will show actionable insights to help advertisers optimize their performances and opportunities to reach consumers.
The company also unveiled a study on Gen-Z and men users, offering advertisers key insights into the two audiences that are key drivers of Pinterest’s new user growth in the United States.
This is expected to have increased advertisers on the platform, thus driving average revenue per user (ARPU) 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. But that’s not the case here.
Pinterest has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Atlassian Corporation PLC (TEAM - Free Report) has an Earnings ESP of +24.48% and is Zacks #2 Ranked.
Snap Inc. (SNAP - Free Report) has an Earnings ESP of +3.57% and a Zacks Rank #3.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
Pinterest (PINS) to Report Q1 Earnings: What's in Store?
Pinterest (PINS - Free Report) is set to report first-quarter 2021 results on Apr 27.
The Zacks Consensus Estimate for first-quarter earnings has remained steady at 7 cents per share over the past 30 days.
The consensus mark for revenues is pegged at $467.8 million, indicating an increase of 72.05% 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 315.6%.
Pinterest, Inc. Price and EPS Surprise
Pinterest, Inc. price-eps-surprise | Pinterest, Inc. Quote
Factors to Consider
Pinterest’s initiative to launch Story Pins following streams is expected to have boosted user engagement in the soon-to-be-reported quarter. It is a place for more than 442 million people who come to Pinterest every month to see new Story Pins from the creators they follow, right at the top of the home feed.
Additionally, in the first quarter, Pinterest launched its newest widget option for iOS called Interests, where Pinners can choose their top interests and have fresh content served to them daily on their home screen.
Moreover, Pinterest announced the launch of the company’s latest augmented reality feature — AR Try on for eyeshadow, with products from Lancome, YSL, Urban Decay, and NYX Cosmetics. The virtual eyeshadow experience can be found across more than 4,000 shoppable shades.
Further, the company’s new initiatives and partnerships with health institutions, doctors, and community organizations to highlight expert content around COVID-19 and to fight against COVID-19 vaccine misinformation are expected to have contributed to international user base growth in the to-be-reported quarter.
In fourth-quarter 2020, monthly active users (MAUs) Global increased 37% year over year to 459 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 with the rising wave of coronavirus cases internationally.
On Mar 3, Pinterest hosted its first global advertiser summit, Pinterest Presents, in which the company rolled out its latest ad product updates, including Pinterest Premiere, a new video ad solution, enabling advertisers to engage their audiences at scale, thanks to exclusive video placement, as well as Pinterest Trends and Conversion Insights, the latest planning and measurements tools that will show actionable insights to help advertisers optimize their performances and opportunities to reach consumers.
The company also unveiled a study on Gen-Z and men users, offering advertisers key insights into the two audiences that are key drivers of Pinterest’s new user growth in the United States.
This is expected to have increased advertisers on the platform, thus driving average revenue per user (ARPU) 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. But that’s not the case here.
Pinterest has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:
Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Atlassian Corporation PLC (TEAM - Free Report) has an Earnings ESP of +24.48% and is Zacks #2 Ranked.
Snap Inc. (SNAP - Free Report) has an Earnings ESP of +3.57% and a Zacks Rank #3.
Zacks Top 10 Stocks for 2021
In addition to the stocks discussed above, would you like to know about our 10 best buy-and-hold tickers for the entirety of 2021?
Last year's 2020 Zacks Top 10 Stocks portfolio returned gains as high as +386.8%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2021 today >>