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

If you're searching for a stock with a proven history of exceeding earnings expectations, Pinterest (PINS) should be on your radar. As a player in the Zacks Internet - Software industry, Pinterest is currently well-positioned for another earnings surprise in the upcoming quarterly report.

In the past two reporting periods, Pinterest has shown a solid track record of exceeding earnings estimates. On average, the company has surpassed estimates by an impressive 23.21% over the last two quarters.

In its most recent report, Pinterest announced earnings of $0.29 per share, which beat the Zacks Consensus Estimate of $0.28 by 3.57%. In the prior quarter, it was anticipated that Pinterest would report earnings of $0.14 per share, but the company outperformed expectations with earnings of $0.20, resulting in a remarkable surprise of 42.86%.

Historical Performance and Future Prospects

Given its consistent earnings history, recent analyst estimates for Pinterest have been trending upwards. The Zacks Earnings ESP (Expected Surprise Prediction) for Pinterest is currently positive, suggesting a strong likelihood of an earnings beat. This increases the possibility of good results, particularly when paired with its favorable Zacks Rank.

Research indicates that stocks with both a positive Earnings ESP and a Zacks Rank of #3 (Hold) or higher generally generate positive surprises nearly 70% of the time. This means in a group of 10 stocks that meet these criteria, approximately seven could likely beat their consensus estimates.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate reflects the latest insights from analysts who may have revised their projections closer to the earnings release date, potentially providing a more accurate outlook than earlier estimates.

Currently, Pinterest boasts an Earnings ESP of +1.69%, indicating that analysts are becoming increasingly optimistic about its earnings potential. Coupled with a Zacks Rank of #3, this strong Earnings ESP suggests that another earnings beat might be forthcoming. The next earnings report is expected to be released on November 7, 2024.

Interpreting Earnings ESP

It’s important to note that a negative Earnings ESP can diminish the metric's predictive precision. However, a negative value isn't necessarily indicative of a missed earnings target.

While many companies manage to exceed consensus EPS estimates, it’s crucial to understand that this alone may not be enough to drive stock prices higher. Conversely, some stocks may maintain their valuation even with disappointing results.

Therefore, assessing a company's Earnings ESP before its quarterly announcement is essential for enhancing your success odds. Utilize the Earnings ESP Filter to identify which stocks to consider buying or selling prior to their earnings releases.

Pinterest, Earnings, Estimates