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Pinterest (PINS) to Report Q2 Earnings: What's in Store?

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Pinterest (PINS - Free Report) is set to release third-quarter 2021 results on Nov 4.

The Zacks Consensus Estimate for revenues is pegged at $627.6 million, suggesting an improvement of 41.8% from the year-ago quarter’s reported figure.

The consensus mark for earnings is pegged at 24 cents per share, unchanged over the past 30 days and indicating growth of 84.6% from the figure reported in the year-ago quarter.

Pinterest’s earnings beat the Zacks Consensus Estimate in all of the trailing four quarters, delivering an earnings surprise of 345.96%, on average.
 

Pinterest, Inc. Price and EPS Surprise

Pinterest, Inc. Price and EPS Surprise

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

 

Let’s see how things have shaped up for Pinterest prior to this announcement.

Factors to Consider

Pinterest’s third-quarter 2021 results are expected to have benefited from user base expansion boosted by coronavirus-led social-distancing norms. Availability of features like Today and Shop tab for Pinners has been key catalysts.

Also, enhanced product offerings, new conversion insights, wider Pinner and advertiser base, simplified ad systems through Verified Merchant Program, Pinterest Partners Program for small businesses, and improved advertisers’ ability to measure the effectiveness of their ad spend are expected to have aided advertising revenues in third-quarter 2021.

Pinterest’s launch of Idea Pins feature in the second quarter is expected to have boosted user engagement. This multi-page video format enables all creators across the United States, the U.K., Australia, Canada, France, Germany, Austria and Switzerland to engage with videos and explore content directly on Pinterest.

In second-quarter 2021, global monthly active users (MAUs) increased 9% year over year to 454 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 trend is expected to have continued in the to-be-reported quarter as well.

Moreover, partnership with Shopify is expected to have boost user engagement in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, 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. But that’s not the case here.

Pinterest has an Earnings ESP of 0.00% and carries a Zacks Rank #3 currently. 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 thesehave the right combination of elements to post an earnings beat in their upcoming releases:

Applied Materials (AMAT - Free Report) has an Earnings ESP of +0.52% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Synaptics (SYNA - Free Report) has an Earnings ESP of +0.38% and a Zacks Rank #2.

PerkinElmer has an Earnings ESP of +5.20% and a Zacks Rank #2.


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