Yahoo Finance Will Top-Line Improvement Aid Pinterest (PINS) Q4 Earnings?
Pinterest, Inc. PINS is scheduled to report fourth-quarter 2022 results on Feb 6 after the closing bell. In the last reported quarter, the company reported an earnings surprise of 120%. It pulled off a trailing four-quarter earnings surprise of 60.9%, on average. The San Francisco-based Internet content provider is expected to have recorded higher revenues year over year due to higher demand for its advertising tools and its inclusive strategy to add more customers from different community around the globe.
Factors at Play
During the fourth quarter, Pinterest announced its long-term cooperation agreement with Elliott Investment Management L.P. Pinterest is aiming for increased user engagement with higher monetization per user and a better-personalized experience. This will reduce digital marketing barriers and enhance advertiser’s experience by enabling them to reach the right person at the right moment. It is likely to have had a positive impact on the company’s fourth-quarter earnings.
In the December quarter, the company also expanded ‘Pinterest Trends Tool’ to help creators get better and more comprehensive insights about their marketing campaign performances. Based on this input, advertisers can optimize their decisions regarding marketing campaigns and target audiences. These initiatives are likely to have translated into higher revenues in the quarter.
In the to-be-reported quarter, Pinterest entered into a partnership with Warner Music Group and Merlin to broaden the platform’s music outlook. Access to this global catalog of music will enrich content creators’ creativity with better musical expression. It will also ensure higher engagement from the audience and increase the Pinterest community. These developments are likely to have had a positive impact on Pinterest’s performance.
San Francisco-based company decided to expand in language options like Afrikaans, Croatian and Bulgarian languages in the fourth quarter. This decision will bring inclusiveness to the broader Pinterest community and increase user engagement in that section of the community. The platform already has millions of Pins in Croatian, Afrikaans, and Bulgarian. This decision will make it simpler for advertisers to target those markets. It has likely improved the company’s fourth-quarter earnings prospects.
For the December quarter, the Zacks Consensus Estimate for total revenues is pegged at $885 million, which indicates growth from the year-ago quarter’s reported figure of $828 million. The consensus estimate for adjusted earnings per share stands at 28 cents, suggesting a decline from 49 cents reported in the prior year.
Earnings Whispers
Our proven model does not 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 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 28 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 has a Zacks Rank #3(Hold).
Other 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:
Arista Networks, Inc. ANET is set to release quarterly numbers on Feb 13. It has an Earnings ESP of +0.14% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Earnings ESP for Cambium Networks Corporation CMBM is +9.27% and it is sporting a Zacks Rank of 1. The company is set to report quarterly numbers on Feb 16.
The Earnings ESP for InterDigital, Inc. IDCC is +43.75% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Feb 15.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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InterDigital, Inc. (IDCC) : Free Stock Analysis Report
Arista Networks, Inc. (ANET) : Free Stock Analysis Report
Pinterest, Inc. (PINS) : Free Stock Analysis Report
Cambium Networks Corporation (CMBM) : Free Stock Analysis Report
