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

For investors searching for a stock with a strong history of surpassing earnings estimates, Pinterest (PINS) presents a compelling option. This company, known for its digital pinboard and online shopping platform, operates within the Zacks Internet - Software industry and appears well-positioned to continue its streak of earnings beats in the upcoming quarterly report.

Recent earnings reports have shown Pinterest's impressive record. In the last two quarters, the company has consistently exceeded earnings expectations, averaging a surprise of 23.21% over this period. In the most recent quarter, Pinterest reported earnings of $0.29 per share, outpacing the Zacks Consensus Estimate of $0.28 per share, resulting in a surprise of 3.57%. The prior quarter saw an even larger surprise; analysts anticipated earnings of $0.14 per share, but Pinterest delivered $0.20 per share, leading to a remarkable surprise of 42.86%.

Price and EPS Surprise

This positive earnings history has led to upward adjustments in earnings estimates for Pinterest. Currently, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which bodes well for achieving another earnings beat. This metric, when paired with Pinterest's Zacks Rank, presents a promising outlook.

According to research, stocks that maintain a positive Earnings ESP along with a Zacks Rank of #3 (Hold) or better tend to surprise positively about 70% of the time. This implies that out of ten stocks showing this combination, seven might outperform their consensus estimates.

Specifically, the Zacks Earnings ESP measures the difference between the Most Accurate Estimate and the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate represents the latest predictions from analysts, often reflecting the most current information and providing insights more accurate than earlier projections.

Pinterest currently boasts an Earnings ESP of +1.69%, suggesting that analysts are increasingly optimistic about the company’s earnings outlook. Combined with a Zacks Rank of #3 (Hold), this signals that another earnings beat could be on the horizon. Investors should anticipate the next earnings report, scheduled for November 7, 2024.

It’s important for investors to pay attention to the Earnings ESP before quarterly releases, as a negative indicator here could lessen the predictive value of the metric. However, a negative Earnings ESP does not necessarily mean the company will miss its earnings targets.

Many companies achieve positive earnings surprises, but the reasons behind stock movements can vary. Some stocks may continue to rise even after missing consensus estimates, while others could decline after beating earnings forecasts. Therefore, evaluating a company’s Earnings ESP before earnings reports is crucial for making informed investment decisions. Investors are encouraged to use an Earnings ESP Filter to identify the best opportunities ahead of earnings announcements.

Pinterest, Earnings, Investing