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

Pinterest (PINS) is a stock that has consistently outperformed earnings estimates in the past, making it a candidate worth considering for investors looking for solid performance. The company operates in the Zacks Internet - Software industry and seems well-positioned for yet another earnings surprise.

Over the last two reporting periods, Pinterest has established a noteworthy trend of exceeding earnings expectations. On average, the company has surpassed estimates by about 23.21% in these quarters.

In its most recent earnings report, Pinterest achieved earnings of $0.29 per share, slightly above the Zacks Consensus Estimate of $0.28 per share, resulting in a surprise of 3.57%. In the quarter before, expectations were set at $0.14 per share, but Pinterest exceeded this by reporting $0.20 per share, leading to a remarkable 42.86% surprise.

Price and Earnings Surprise Overview

This impressive earnings history has led analysts to raise their estimates for Pinterest. Currently, the Zacks Earnings ESP (Expected Surprise Prediction) shows a positive outlook for the company, which is an encouraging signal for potential earnings beats, especially when paired with a strong Zacks Rank.

Research indicates that stocks demonstrating a combination of a positive Earnings ESP and a Zacks Rank of #3 (Hold) or better tend to produce positive surprises approximately 70% of the time. This means that among ten stocks with such characteristics, about seven are likely to surpass the consensus estimate.

The Zacks Earnings ESP evaluates the Most Accurate Estimate against the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is based on the latest changes in analysts' predictions, suggesting that they may have the most recent and reliable information leading up to an earnings release.

Pinterest's current Earnings ESP stands at +1.69%, indicating that analysts have grown more optimistic about the company's earnings potential. This positive Earnings ESP, coupled with its Zacks Rank of #3 (Hold), suggests that another earnings beat could be on the horizon. The company's next earnings report is anticipated on November 7, 2024.

Investors should keep in mind that if the Earnings ESP turns negative, it could diminish the predictive capability of this metric. However, a negative reading doesn’t necessarily mean a stock will miss its earnings targets.

Many companies experience earnings beats and yet their stocks may not respond as expected. Conversely, some may manage to hold steady even after reporting lower-than-expected earnings. Therefore, it’s crucial to assess a company's Earnings ESP ahead of its quarterly release to enhance predictive accuracy. Utilizing tools like the Earnings ESP Filter can be beneficial for identifying top stocks to buy or sell before they report earnings.

Pinterest, Earnings, Investors