Pinterest Earnings: What To Look For From PINS

Jabin Bastian 2022/07/31 5:12 am EDT

Social commerce platform Pinterest (NYSE: PINS) will be announcing earnings results tomorrow after market close. Here's what to look for.

Last quarter Pinterest reported revenues of $574.8 million, up 18.4% year on year, in line with analyst expectations. While the stock was up on the results, it was a weak quarter for the company, with declining number of users and topline results in line with analysts' estimates. The company reported 433 million monthly active users, down 9.41% year on year.

Is Pinterest buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Pinterest's revenue to grow 8.15% year on year to $663.1 million, slowing down from the 125% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.18 per share.

Pinterest Total Revenue

The analysts covering the company have had mixed opinions about the business heading into the earnings, with revenue estimates seeing two upward and five downward revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 5.54%.

Looking at Pinterest's peers in the social networking segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Twitter's revenues decreased 1.15% year on year, missing analyst estimates by 11.9% and Snap reported revenues up 13.1% year on year, missing analyst estimates by 2.07%. Twitter traded down 3.88% on the results, and Snap was down 23.7%. Read our full analysis of Twitter's results here and Snap's results here.

There has been positive sentiment among investors in the social networking segment, with the stocks up on average 8.01% over the last month. Pinterest is up 6.24% during the same time, and is heading into the earnings with analyst price target of $24.7, compared to share price of $19.39.

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The author has no position in any of the stocks mentioned.