Social commerce platform Pinterest (NYSE: PINS) will be announcing earnings results tomorrow afternoon. Here’s what you need to know.
Pinterest beat analysts’ revenue expectations by 1.2% last quarter, reporting revenues of $1.15 billion, up 17.6% year on year. It was a strong quarter for the company, with EBITDA guidance for next quarter exceeding analysts’ expectations. It reported 553 million monthly active users, up 11% year on year.
Is Pinterest a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Pinterest’s revenue to grow 14.5% year on year to $846.9 million, slowing from the 22.8% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.26 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Pinterest has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.5% on average.
Looking at Pinterest’s peers in the social networking segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Snap delivered year-on-year revenue growth of 14.1%, beating analysts’ expectations by 1.3%, and Reddit reported revenues up 61.5%, topping estimates by 6.2%. Snap traded down 12.6% following the results while Reddit was also down 4.2%.
Read our full analysis of Snap’s results here and Reddit’s results here.
There has been positive sentiment among investors in the social networking segment, with share prices up 20.6% on average over the last month. Pinterest is up 10.7% during the same time and is heading into earnings with an average analyst price target of $39.76 (compared to the current share price of $27.32).
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