Will Pinterest (PINS) Beat Estimates Again in Its Next Earnings Report?

Investors looking for a strong performer in the stock market should pay attention to Pinterest (PINS). This company has built a solid reputation for surpassing earnings estimates consistently and appears well-positioned to continue this trend in its upcoming quarterly report.

Recently, Pinterest has demonstrated a positive trajectory in its earnings history. Specifically, the company has exceeded earnings expectations in its last two reports. The average earnings surprise over these quarters has been an impressive 23.21%. This trend indicates a robust operational performance that could lead to further positive results.

Recent Earnings Performance

In the last reported quarter, Pinterest announced earnings of $0.29 per share, comfortably beating the Zacks Consensus Estimate of $0.28 per share. This performance equates to a surprise of 3.57%. Additionally, in the quarter before that, analysts had projected earnings of $0.14 per share, but Pinterest reported actual earnings of $0.20 per share, resulting in a notable surprise of 42.86%.

Positive Estimates Moving Forward

This strong history of earnings success has led to recent upward revisions in analysts' estimates for Pinterest. The Zacks Earnings ESP (Expected Surprise Prediction) for Pinterest is currently positive, which is an encouraging indication of a potential earnings beat. When combined with its Zacks Rank, the positive Earnings ESP suggests strong potential for future performance.

Research has demonstrated that stocks possessing both a positive Earnings ESP and a Zacks Rank of #3 (Hold) or above tend to deliver positive surprises nearly 70% of the time. This means that, among ten stocks with this combination, approximately seven might beat their consensus estimates.

Understanding Earnings ESP

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for an upcoming quarter. The Most Accurate Estimate reflects the latest analyst revisions and is often more reliable than earlier consensus predictions. As of now, Pinterest has an Earnings ESP of +1.69%, signaling that analysts have turned bullish regarding the company’s earnings outlook.

This optimistic Earnings ESP, paired with Pinterest's Zacks Rank of #3 (Hold), suggests that another earnings beat may be on the horizon. Investors should prepare for the forthcoming earnings report, expected to be released on November 7, 2024.

Viewing Estimates and Market Reactions

It is essential for investors to note that a negative Earnings ESP can diminish the predictive accuracy of this metric, but it does not necessarily indicate an earnings miss. In some instances, companies may still outperform expectations, while others may see shares move sideways despite missing estimates. Therefore, understanding a company’s Earnings ESP prior to its earnings announcement can significantly enhance the chances of making informed investment decisions.

For anyone interested in identifying robust stocks ahead of their earnings reports, utilizing an Earnings ESP Filter can be highly effective. This tool allows investors to pinpoint stocks that may yield favorable outcomes in terms of earnings performance.

Pinterest, Earnings, Estimates