Social commerce platform Pinterest (NYSE: PINS) will be reporting results this Tuesday after market hours. Here’s what investors should know.
Pinterest beat analysts’ revenue expectations last quarter, reporting revenues of $1.01 billion, up 17.8% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and EBITDA guidance for next quarter topping analysts’ expectations. It reported 631 million monthly active users, up 10.7% year on year.
Is Pinterest a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Pinterest’s revenue to grow 15% year on year, slowing from the 16.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Pinterest has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Pinterest’s peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Reddit delivered year-on-year revenue growth of 61.1%, beating analysts’ expectations by 9.9%, and Meta reported revenues up 28%, topping estimates by 1%. Reddit traded down 21.8% following the results while Meta was also down 7.9%.
Read our full analysis of Reddit’s results here and Meta’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the consumer internet stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.2% on average over the last month. Pinterest is up 7.5% during the same time and is heading into earnings with an average analyst price target of $27.64 (compared to the current share price of $23.95).
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